The Investor Insight | January 2023

During Q4, investors continued to dump equities at a record pace as major central banks signaled that they won’t be deterred in their fight against inflation—a fitting end to the worst year for world stocks since the 2008 global financial crisis. According to Bloomberg Analytics, equity funds experienced outflows of more than $42 billion, the highest ever, in a week when the Federal Reserve, the European Central Bank, and the Bank of Japan all continued their staunchly hawkish tone in their policy outlook for next year, even in the face of recent evidence that inflation has peaked and is heading lower.