FYI:
The flow picture has further deteriorated over the two weeks ended November 14, with total outflows amounting to more than $16 billion. Equity mutual funds experienced less carnage than bond and hybrid funds. Indeed, flows to equities were positive for the week ended November 7 at $1.8 billion but turned negative next week at $3.8 billion.
Meanwhile, the bond funds saw total outflows of a little more than $9 billion during the period, while hybrid funds, a combination of equity and bond holdings, suffered more than $5 billion in withdrawals.
Brexit has been on the mind of many investors these past weeks. The European Union reached an accord with the U.K., putting aside the issue of Gibraltar. The ball is now in the court of U.K. Parliament, which should vote on the deal. It is believed there is no parliamentary majority for the deal to go through, but Prime Minister Theresa May started to appeal directly to voters in an attempt to convince them this is the best deal U.K. can achieve. Meanwhile, U.S. President Donald Trump weighed in on the debate, saying the U.K. would not be able to do trade deals with the U.S. and calling the accord “great” for the EU.
Germany’s economy contracted in the third quarter by 0.2%, triggering worries about the health of GDP growth at a time when the country is facing political heat given the dwindling support for long-time Chancellor Angela Merkel.
The European Central Bank signaled it was ready to keep its loose monetary policy unchanged if the prospect of higher inflation dissipates.
Crude oil inventories have continued to rise over the past two weeks, setting off a wave of selling in the market. There are particular concerns about demand given the weak economy in Europe, and the negative effect of the Sino-U.S. trade war.
Regards,
Ted
http://mutualfunds.com/news/2018/11/27/mutual-funds-scorecard-november-27-edition/?utm_source=MutualFunds.com&utm_campaign=0939435e13-EMAIL_CAMPAIGN_2018_11_22_08_52_COPY_04&utm_medium=email&utm_term=0_83e106a88d-0939435e13-290921629
