Using EPFR and CEIC data to analyze the August 2024 correction

Fund flows, monetary policies and key macroeconomic indicators interact in intricate ways.

The dramatic selloff recently experienced across global markets was thought to have been triggered by the Bank of Japan’s latest decision, leaning towards a monetary normalization policy. Weaker-than-expected indicators coming from the US have also affected market sentiment.

What were money flows showing before the selloff?

Using EPFR’s fund flow data and CEIC’s proprietary, machine learning-driven economic nowcasts, this Chart Pack dissects the market positioning in the run up to sell-off.

Charts representing "US and Japan Year to date Equity Fund Flows"

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Turkish assets take a roasting in late March

Turkish assets take a roasting in late March

Another volatile week for global asset markets saw investors gravitate to funds offering exposure to gold, technology, diversified developed markets equity, dollar-denominated liquidity and European stocks during the fourth week of March. With risk appetite still at a low ebb, especially among fixed income investors, Bank Loan Funds extended their longest run of outflows since mid-3Q24, High Yield Bond Funds posted their second outflow over the past three and there was a strong reaction to the latest bout of political unrest in Turkey with EPFR-tracked Turkey Bond and Money Market Funds both setting new outflow records.

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