Investor Flows – Good News is Bad News

Markets sold off on Friday following the release of better-than-expected employment data. Job market strength is bad for investors because it means the Fed will continue hiking rates, or so the market believes. Flows for the past 30 days remain skewed toward US government funds as investors flee for safety but it’s not entirely risk-off. Large/mid-cap and broad equity funds together make up an equivalent share to US government funds.   

Commodities Update – October 10, 2022

Commodities had a strong week, with most gains concentrated within the energy sector. Overall, Bloomberg’s BCOM Index gained 5% on the week. Tin suffered the largest losses on continued recession fears. Brent crude, gas oil, heating oil, WTI crude, and gasoline all saw gains for the week as OPEC+ decided to cut production by a whopping 2 million barrels a day. The cut, which will be the deepest since the 2020 COVID pandemic, prompted analysts at Goldman Sachs to raise its oil price forecast for 2023 to $110 per barrel from $108 per barrel.