U.S. Investors Flee to Safety Amid Tariff Turmoil
Amid economic uncertainty fueled by new trade tariffs, U.S. investors significantly shifted their investments from equity funds to money market funds in early August. Equity funds saw the largest net withdrawals since June, while money market funds attracted substantial inflows. Bond funds also experienced a notable rise in investments.
Amid heightened economic uncertainty due to President Donald Trump's latest trade tariffs, U.S. investors rapidly divested from risk-laden equity funds in early August.
According to data from LSEG Lipper, a staggering $13.7 billion was pulled out from U.S. equity funds, marking the largest weekly outflow since late June. Conversely, money market funds witnessed a significant $78.85 billion influx, the highest since early December.
Despite the chaotic investment climate, sectoral funds like communication services and industrials enjoyed net inflows, while bond funds saw an 11-week high in investments, indicating continued investor interest in relatively secure avenues.
(With inputs from agencies.)
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