Despite the recent constant withdrawals of foreign capital from the stock market, with all macroeconomic factors considered, there are still a few highlights to look at. Cash flows change direction due to tariff policy Global financial markets now tend to be cautious about disbursing into equity funds. Instead, investors are opting for other safer assets, including bond funds and money market funds, according to a report by SSI Securities Corporation. This is ascribed to the tariffs U.S. President Donald Trump imposes on major trading partners, thereby raising the possibility of an escalating trade war. Specifically, global equity funds maintained a cautious stance during the first two weeks of February, when investors were not sure about Trump’s tariff policy. Net inflows in the month declined by 16% against January, amounting to only US$54.1 billion. Meanwhile, bond funds once again prove to be an attractive asset class in a volatile environment, as they continued to register net inflows worth US$73.4 billion, up 9% from January and equivalent to 11% of the net inflow value in the whole year of 2024. Following the same trend as bond funds, cash flows into money market funds staged a rally valued at US$121.5 billion, a surge […]
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