Earnings growth wrestles inflation for control of market narrative

Rising prices and higher-than-expected earnings shaped investor sentiment during the third week of October. Most of the companies reporting their 3Q21 numbers surpassed expectations. But their reports and forecasts were qualified by the shortages, input cost increases and supply chain issues they are facing.

Investors responded by pouring nearly $25 billion into EPFR-tracked Equity Funds, with 10 of the 11 major Sector Fund groups recording inflows for the week, and by stepping up their search for inflation protection. Bank Loan and Inflation Protection Funds took in over $1 billion apiece, and Cryptocurrency Funds extended their current inflow streak.

Graph depicting the 'Cumulative flows, as percentage of Assets under management, for major money market fund groups, from 2016 to date'.

Graph depicting 'Change, in basis points for GEM equity fund allocations to major markets, 2021 to date'.

Did you find this useful? Get our EPFR Insights delivered to your inbox.

Related Posts

Green shoots for Europe stock funds

Green shoots for Europe stock funds

With the Bank of England and the European Central Bank widely expected to follow the example of their Swedish and Swiss counterparts, and start cutting interest rates at their June policy meetings, investors waded a little deeper into the European equity pool during the second week of May.

Living through interesting times

Living through interesting times

Weaker US job creation numbers and the first interest rate cut by Sweden’s central bank since 2016 gave investor risk appetite a modest boost during the first week of May. Flows to all EPFR-tracked Equity Funds climbed to a six-week high, High Yield Bond Funds recorded their biggest inflow since early November and Europe Equity Funds posted consecutive weekly inflows for the first time in over 14 months.

Sell in May and go away until 2025?

Sell in May and go away until 2025?

The final week of April ended with US markets closing the books on their worst month since September, the price of Bitcoin down some 17% from its mid-March high, Russia on the offensive in Ukraine and US interest rate cuts nowhere in sight. Against this backdrop, flows to most EPFR-tracked fund groups remained subdued for the second week running.

Better, More Actionable Insights

Let us show you how EPFR can create value for your specific strategy