During the week ending March 12, U.S. equity funds experienced a notable influx of capital, attracting net purchases totaling $4.67 billion. This positive sentiment among some investors was partially driven by a weaker Consumer Price Index (CPI) reading, which alleviated some concerns regarding inflation. However, underlying worries about the broader economic implications of President Donald Trump’s trade policies continued to loom over the market, contributing to a climate of uncertainty.
Despite the recent inflows, it’s important to note that February had generated exceptionally strong interest, with equity funds accumulating roughly $9 billion. This surge has softened somewhat, as the first two weeks of March recorded a combined outflow of $4.81 billion, indicating a shift in investor behavior during this period of fluctuations.
Mark Haefele, the chief investment officer at UBS Global Wealth Management, advises investors to maintain a diversified portfolio and remain committed to their investments, even amidst the ongoing market volatility. He pointed out that there are still promising potential returns to be found in sectors such as U.S. equities, artificial intelligence, and power-and-resources-linked stocks as we approach the year’s end.
Haefele also highlighted the importance of navigating the current geopolitical tensions by ensuring portfolios are well-diversified. This includes incorporating quality bonds, gold, and alternative investment options to mitigate risk.
In a clearer reflection of investor sentiment, U.S. large-cap funds, in particular, continued to show resilience, receiving $8.78 billion—a trend that marks the fifth consecutive week of net inflows, suggesting a sustained confidence among investors in large-cap equities despite external challenges.
