As sobering data piles up, shape of predicted recovery changing for the worse
Going into August, investors hoping for a V-shaped recovery from the economic downturn triggered by the COVID-19 pandemic found themselves looking for new letters – W, U, L and K all have their advocates – as data from the US and Europe suggested the rebound that started in mid-2Q20 is losing momentum. Mutual investors responded by focusing on cash, precious metals and asset classes where there is a central bank acting as buyer of last resort. US Bond, Gold and Japanese Equity Funds all recorded healthy inflows during the week ending July 28th and Money Market Funds posted consecutive weekly inflows for the first time since early May.
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