Barclays estimates that global mutual funds investors may offload equities worth a further $350bn this year, unless fear of recession declines, according to a report by Reuters.
Investors have been selling equities because of rising inflation. This has forced economies to increase interest rates.
According to Barclays, equity outflows made up an average of 2.6% of mutual funds’ assets under management (AUM) in previous periods of major stock sell-offs, such as the Great Financial Crisis of 2008-09, against 0.3% this year.
This means another $350bn of equity sell-off could happen this year unless recession fears vanish.
Read more: Private Banker International
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