Seven straight weeks of inflows into global stocks signal cautious optimism

EPFR flow data cited by Reuters show that global equity funds recorded a seventh consecutive week of net inflows in the week to November 4. Investors kept adding to stock funds even as major central banks, including the Federal Reserve, left policy rates on hold and oil prices fell, easing fears of a stagflation‑style worst case. Yet equity indices in the U.S. and parts of Asia still declined over the same period amid worries about the soaring cost of the AI build‑out and its impact on corporate profits, creating the unusual combination of positive flows but soft price performance.

By region, U.S. equity funds attracted the largest inflows, with Asia and broader emerging‑market funds also seeing net buying. Global bond funds enjoyed their biggest weekly inflow since 2020, and money‑market vehicles absorbed an even larger wave of cash as investors parked short‑term liquidity. The pattern suggests a stance of “cautious optimism”: investors are gradually rotating back into risk assets as recession fears ebb, but they remain mindful that high interest rates could persist, and are therefore spreading their bets across stocks, bonds and cash rather than making a one‑way bet on equities.