Weekly Investment Flow Summary

Equity Funds & Bond Funds Analysis
Equity funds recorded an inflow of $4 billion for the week ending October 23, 2024, while bond funds brought in $13.5 billion, according to Citi.

Exchange-Traded Funds (ETFs)
US and global ETFs were the biggest recipients, with a total inflow of $11.2 billion for US ETFs and $3.9 billion for global ETFs.

Japan Funds
Japan funds reversed their outflow trend, observing inflows of $1.5 billion after two weeks of negative flows.

Emerging Markets Overview
In contrast, emerging markets saw challenging flows. China-focused ETFs experienced a second consecutive week of outflows, losing $6.4 billion despite a nearly 4% rise in net asset value. However, emerging market equity funds outperformed developed markets by 1.7%, and global emerging market ETFs had a modest inflow of $0.7 billion.

Regional Highlights
– Taiwan: $2.3 billion in net foreign inflows
– India: $1.0 billion in foreign institutional investor outflows
– South Korea: $0.7 billion in outflows
– Hong Kong: Stable with $1.4 billion in southbound flows

Gold Funds
Gold funds surged significantly, attracting $2.7 billion in this period. Cumulative inflows since May have totaled $13.6 billion.

US Equity Market Outlook
The recent rally in US equities is stabilizing as crucial market-determining events approach. Major tech companies are set to announce earnings, and the anticipated employment report is forthcoming, against the backdrop of an impending US election.

While the S&P 500 has gained roughly 22% this year, its recent retreat from record highs raises concerns. Stocks are trading at elevated valuations, making the market vulnerable to downside risks if future events underperform expectations. The S&P 500’s forward price-to-earnings (P/E) ratio, based on anticipated earnings for the next 12 months, sits at 21.8, the highest in over three years, per LSEG data.