Where did the smart money go in October?

Equity markets continued to slide in the first week of October, while fixed income was supported by the ongoing reluctance of central bankers to raise rates in the face of weakening economic data. However, this reversed in the second half, as bargain hunters emerged to shore up equity markets and some risk aversion melted away. European equity markets took the brunt of outflows in the first half of the month. The week to 15 October saw $5.7bn pulled out of European equity funds, according to EPFR Global data, the biggest withdrawal on record. Investors have become increasingly spooked...