Rate hike concerns intensify: Global equity funds see $15.5 billion outflow in one week In the week ending September 9, global equity funds experienced a net outflow of $15.523 billion, compared to a net inflow of $6.591 billion the previous week. Meanwhile, money market funds saw a net inflow of $10.72 billion, and bond funds recorded a net inflow of $8.95 billion. Looking at this in the context of the Fed's interest rate decision meeting early Thursday morning, I’m more inclined to believe that some funds are preemptively reducing equity positions to guard against a Fed rate hike and potentially more hawkish policies ahead. The pressure from rising oil prices has already started to influence market expectations around interest rates. Higher energy prices initially push up overall inflation and could later impact the prices of goods and services through increased transportation and production costs. If the economy and employment remain resilient while inflation stays stubbornly high, the Fed would have justification to maintain high interest rates or even hike rates again. (Although my personal stance is that the Fed won’t raise rates, that doesn’t mean I’m necessarily right.) For investors, it’s likely that concerns over a Fed rate hike have prompted some to reduce positions. This is also evident from the inflows into bond funds. Of the $8.95 billion net inflow, $6.65 billion went into short-term bond funds. Short-term bonds are less sensitive to interest rate changes and allow for easier reallocation upon maturity, which aligns with investors’ strategy of collecting interest while waiting for the meeting’s outcome. So, I think this data reflects that some funds have already started managing risk ahead of the Fed meeting. And even if there’s no rate hike this time, if the dot plot is revised upward or the Fed signals potential hikes in October or December, the pressure on U.S. stocks and Bitcoin may not ease. Unless the rate hike aligns with expectations and the Fed’s subsequent statements are relatively restrained, the market might only breathe a sigh of relief after the news is fully digested. @Gate Crypto, U.S. stocks, Hong Kong stocks, Korean stocks, gold, CFDs, prediction markets—all in one place for trading.