Global Navigator: AI theme reasserts itself in mid-November

Having steered over $200 billion into US Equity, Money Market and Bond Funds over a two-week period, investors took stock during the third week of November and revisited some of the themes – good and bad – that drove markets before the US presidential election earlier this month.

Among those themes were clean energy, Chinese fiscal and monetary policy, artificial intelligence (AI), conflicts in the Middle East and Ukraine, the likelihood of a ‘soft landing’ for the US economy and inflationary dynamics in key markets.

Of these,?the war in Ukraine and AI garnered the most attention as the US eased some of the restrictions on where Ukraine can fire the missiles it is supplying and AI bellwether Nvidia released another compelling quarterly earnings report. Investors steered over $5 billion into Technology Sector Funds while Europe Equity Funds registered their second-largest outflow over the past 15 months.

Other key trends reported by EPFR-tracked data also include:

• All Equity Funds saw a net $14.4 billion inflow.
• Sixth straight outflow for all Emerging Markets Equity Funds.
• India Equity Funds posted their biggest outflow since 2Q22.
• New weekly record inflows toward Argentina Equity Funds.
• 38th collective inflow of the year for Developed Markets Equity Funds.
• Singapore Equity Funds posted their biggest weekly inflow since mid-4Q21.
• Fourth-largest inflow year-to-date for Technology Sector Funds.
• Physical Gold Funds posted their third straight outflow.
• Cybersecurity Funds continue with their positive inflow streak despite data breaches.
• Money Market Funds registered a $1.2 billion outflow.
• Bond Funds pulled in $9.1 billion.
• Emerging Markets Bond Funds posted their biggest outflow in nearly 20 months.
• Heaviest redemptions from Pacific Regional Bond Funds since 4Q11.

For further insights, please read the full report.