Markets Now – Wednesday 25th March 2020

March 25
21:04 2020

Money market funds saw record inflows in March as risk assets collapsed. Continued caution is thus warranted but month-end pension funds’ rebalancing following the extreme equity/bond underperformance in Q1, along with decisive central banks’ action,could provide a near-term backstop to the markets and reduce volatility. Retail has not capitulated either, given resilient inflows to passive equity funds, although some popular US ETFs saw big redemptions last week.

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