A Topsy-Turvy Tale of Funds and Frenzy
In a whirlwind of activity, American money market funds saw their fourth consecutive week of inflows, as the specter of an economic deceleration loomed large. Investors poured $42.51 billion into these funds by April 5, although it was the least voluminous injection since the ides of March.
Surprisingly, a voracious appetite for U.S. bond funds emerged amidst the turmoil, with investors gobbling up a staggering $8.1 billion worth—a feat not witnessed since January 11. The allure of domestic taxable fixed income and government bond funds proved irresistible, leading to an eight-week buying bonanza.
Equities Ebb: The Great Withdrawal
Simultaneously, the U.S. equity funds landscape underwent a metamorphosis, as $10.34 billion made a hasty exit. This marked a significant reversal from the prior week’s hemorrhage of $20.75 billion. U.S. large-, mid-, and small-cap equity funds weathered a veritable storm, with sell-offs of $5.14 billion, $102 million, and $1.81 billion, respectively.
Sectors in Flux: Flight and Fancy
The tides of fortune shifted within specific sectors as well. Investors abandoned financial and healthcare funds to the tune of $1.2 billion and $694 million, respectively. In contrast, the shimmering beacon of technology drew them in, amassing a respectable $566 million in inflows.
