Investors continue to favor emerging market equity funds; big institutional flows into large-cap fund drives US equity fund flows; threat of dollar weakness hits Europe and Japan equity funds; Financial Sector and Real Estate funds respond to rate cut.
The US Federal Reserve’s bold rate cut on September 18 reassured investors that America’s central bank accords economic growth a high priority. But the prospect of an even weaker dollar, and the inflationary implications at a time when oil prices are setting new record highs, resulted in a generally subdued response to the 50 basis points reduction in the federal funds rate.
The US Federal Reserve’s bold rate cut on September 18 reassured investors that America’s central bank accords economic growth a high priority. But the prospect of an even weaker dollar, and the inflationary implications at a time when oil prices are setting new record highs, resulted in a generally subdued response to the 50 basis points reduction in the federal funds rate.
