Several global equity funds are witnessing a surge in outflows for the week ending May 11, as investors are shaken with news of a potential economic slowdown caused by further tightening by the Federal Reserve to fight inflation.
Many investors have so far stripped $10.53 billion from global equity funds, after liquidating their shares for a fifth straight week of selloffs, compared with the $1.65 billion worth in net sales last week, according to Refinitiv.
Almost every asset class has been facing losses as a looming crisis is encouraging investors to flee big securities including Apple, according to strategists at Bank of America.The MSCI’s index of world shares plunged to a 1.5-year low of 607.4 so far this week, as more news of skyrocketing inflation raised fears of a hard economic landing this year.
Equities, bonds, cash, and precious metals all witnessed outflows, with technology stocks suffering their biggest losses so far this year at $1.1 billion, second only to financials, which lost $2.6 billion.Analysts believe that the meltdown in cryptocurrencies and overblown speculation in tech stocks is appearing to rival the dot-com bubble crash of the late 1990s and the global financial crisis of 2007–2009.
