Major Outflows Hit Most Asset Classes as Recession Woes Mount
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Investors fled most major asset classes in the past week, with US equities and Treasuries a rare exception to the massive exodus, amid concerns that tightening monetary policy will push leading economies into a recession.
Global equity funds had $5.2 billion of outflows in the week to May 18, led by redemptions from mutual funds, although US stock funds managed to attract a small $0.3 billion inflow, according to Bank of America Corp.’s note citing EPFR Global data. Bond fund outflows reached $12.3 billion, with only Treasuries and government debt seeing additions. Investors also exited cash and gold.