‘Steady as she goes’ for the time being across investment markets. I have a lengthy agenda today, so let’s pitch straight in.
On this week’s agenda:
- Increased appetite for equity funds
- The cash dilemma
- The UK looks ripe for mergers and acquisitions
- UK equities still out of favour
- UK property market picking up steam
- Do we want a Sustainable future?
- The AI boom
Increased appetite for equity funds
It was only a few weeks ago that we were talking about record inflows into money funds (cash). Moving on a month or so, data shows that inflows into equity funds surged in January, to the highest level in three years, whilst investment into money funds slowed significantly. This was reported in Investment Week and was in accordance with Calastone’s Fund Flow Index.
This suggests a polarisation in investor thinking. It may be that when markets dipped halfway through the month, some of the money fund assets were recycled but, nevertheless, it does serve to highlight the dichotomy for investors. The general news flow is awful, yet investment markets are performing well.
The investment markets are forward looking and with a ‘soft landing’ expected for economies, there is most definitely a sense of relief out there. Overall, £2 billion poured into equity funds in January, one of the highest months in the index’s history. UK investors into the markets at were their most bullish since 2021.
Want to continue reading?
Our CEO, Gary Neild, writes an engaging Market Commentaries every week. If you would like to receive the full version straight to your inbox every Friday, please join our communications list.
Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.