FYI: Nearly $20 billion were withdrawn from all types of mutual funds in the eight days through November 28, a continuation of the downtrend. Add the $17 billion in outflows recorded in the prior week, and the total outflows since the last scorecard stand at $37 billion.
No asset class was spared this time around, with equity funds the biggest loser as outflows totaled nearly $18 billion for the two weeks ended November 20. Meanwhile, hybrid funds, which consist of a mix between bonds and stocks, saw the least amount of outflows, around $5.9 billion. Finally, bond mutual funds experienced over $12 billion in outflows.
On the macro arena, China’s temporary truce with the U.S. was the biggest news, with investor hopes high that a trade war would be averted. The 90-day standstill to allow the parties to reach a mutually beneficial deal was followed swiftly by the arrest of a top Huawei executive in Canada. The unexpected move raised tensions on the political arena and weakened chances for a deal.
The OPEC has agreed to cut global oil supply by 1.2 million barrels per day in a desperate bid to prop up plummeting prices. The cuts will last for six months, and the breakdown for each country was not disclosed. Russia, which is not part of OPEC, also agreed to the cuts, with one delegate saying the country and other non-OPEC members will reduce output by 400 million barrels.
The European Union and Britain sealed a Brexit agreement only to reopen talks after it became clear there were not enough votes in the British Parliament to ratify the accord. The EU signaled openness on providing additional assurances to facilitate ratification but would not reopen the treaty.
As the U.S. economy expanded by an annualized 3.5% in the third quarter, the Federal Reserve indicated that interest rates are just below their neutral point, a level that neither encourages nor discourages economic activity. Chair Jerome Powell’s comments triggered bets the American central bank would pause hiking interest rates.
Regards,
Ted
http://mutualfunds.com/news/2018/12/11/mutual-funds-scorecard-december-11-edition/
