The “Fear of Missing Out” (FOMO) was alive and well in the final week of 2025.
According to LSEG Lipper data, global equity funds attracted a robust $26.54 billion in the year’s final week, cementing a stellar year where the MSCI World Index rose 20.6%—its strongest performance since 2019.
📊 THE 2025 FINALE SCORECARD:
1️⃣ Equity: The US Leads the Charge
- Weekly Inflows: $16.89 billion went into U.S. funds, followed by Europe ($5.75B) and Asia ($2.67B).
- Sector Rotation: Investors rotated into cyclical sectors: Financials (+$574M), Real Estate (+$413M), and Industrials (+$337M). Healthcare remained out of favor (net outflows of $510M).
2️⃣ Bonds: A Rare Pullback
- The Surprise: Global bond funds posted $1.97 billion in net outflows—their first weekly sales since April.
- The Big Picture: Despite the dip, 2025 was a monster year for fixed income, attracting $891.74 billion in total net inflows.
3️⃣ The Safety Trade (Barbell Strategy): Investors aren’t going “all in” on risk just yet.
- Cash Pile: Money Market funds absorbed a massive $79.4 billion in the final week.
- Gold Rush: Precious metals funds saw their 8th straight week of inflows (+$2.03B).
🔮 2026 OUTLOOK: The fundamental backdrop remains supportive. Analysts forecast corporate earnings to grow 12.11% in 2026, holding steady against the 12.32% growth seen in 2025.
💡 ANALYST TAKEAWAY: The data suggests a “Barbell Approach” going into January. Investors are chasing the AI-driven equity rally (US Tech/Industrials) while simultaneously parking massive liquidity in Money Markets and Gold as insurance. The $79B cash injection suggests plenty of dry powder remains on the sidelines.
👇 Portfolio Managers: With earnings growth projected at ~12%, are you overweight Equities or holding Cash for a Q1 dip?