Making Sense. In A Nonsensical Way

Making Sense. In A Nonsensical Way

Global equity funds took in just $4.8 billion over the latest weekly reporting period. That's notable for a few reasons. Most obviously, it marked yet another weekly inflow in an uninterrupted deluge that now sums to more than $640 billion for 2021 (figure below). But it's also notable for being the fourth-lowest weekly haul of the year. You might suggest that hints at risk aversion. The breakdown did, in fact, betray a defensive bent. Tech enjoyed a sixth consecutive weekly inflow, for exa
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4 thoughts on “Making Sense. In A Nonsensical Way

  1. I’m not sure if EM means different things to different people and firms. But if China is included in the definition of EM (which strikes me as strange in that it is the second largest economy and growing faster than the largest economy), then isn’t much of the outflow story related to concern about the predictability of the regulatory environment in China? While Hartnett might be correct that there is value in the companies, investors are frightened that the value will not be realized by those who own shares. So perhaps the issue is that most investors think that risks like inflation and low growth are easier to quantify than what might seem, at least from a distance, the unpredictable whims of Chinese regulators.

  2. Many (actually most) people, as they age, are unable and unwilling to adapt their view of and their interaction with the world – as the world continues to change.
    They might have been really great and figuring out and understanding how to interact for a set time period when things were operating pretty much the same way. However, so much has changed (I won’t bore you with a list- but it goes way beyond the way the Fed/elected officials are acting – and you can make your own list), that I am actually not surprised at all that certain “titans” are passed their prime and can’t make sense of the changes.
    For example, my dad was “on fire” making money during the 1970’s buying crap bungalows and using free child labor (my brother and me) to fix them up and maintain them. For that period in time, the world made sense to him and he was confident interacting in the world and he made some money. However, for the last 20 years, he has pretty much believed, said and acted as if the world, and especially the US, has gone to “hell in a handbag”. I used to give him the “facts” of an improving world (longer lives, healthier, wealthier, access to food/water etc) but it didn’t work. Now, I just settle in to listen, while periodically checking in on my portfolio and throwing in an “Uh huh”

    Then I vow to never, ever be the type of person who gets “fixed” in yesterday. When my kids talk, I do more than listen- they are my “free” education about the world as it is today and tomorrow.

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