Global Equity Funds Attract Record Inflows Amid AI Optimism

Global equity funds experienced a notable surge in inflows, with investors channeling $22.37 billion into these funds during the week ending November 5. This represents the largest weekly purchase since October 1, driven by optimism about artificial intelligence-linked corporate deals during a market correction.

The MSCI World Index saw a decline of approximately 1.6% in the same week, as political uncertainty and shifting investor sentiment injected volatility. Nevertheless, experts like Mark Haefele from UBS Global Wealth Management remain confident in the fundamentals supporting the ongoing rally.

The technology sector enjoyed its largest weekly inflow since at least 2022, attracting $4.29 billion. Meanwhile, bond funds saw a continued inflow for 29 consecutive weeks, garnering $10.37 billion. Conversely, gold and precious metals funds faced their second week of net sales as investors withdrew $554 million.