𝗜𝗻 𝘁𝗵𝗶𝘀 𝘁𝗼𝘂𝗴𝗵 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻, 𝘄𝗵𝗲𝗿𝗲 𝗶𝘀 𝘁𝗵𝗲 𝘀𝗺𝗮𝗿𝘁 𝗺𝗼𝗻𝗲𝘆 𝗳𝗹𝗼𝘄𝗶𝗻𝗴? To get the answer, we checked the mutual fund categories that received the highest inflows. The data suggest that investors anticipated volatility due to high valuations. As a result, categories like 𝗔𝗿𝗯𝗶𝘁𝗿𝗮𝗴𝗲 𝗮𝗻𝗱 𝗠𝘂𝗹𝘁𝗶 𝗔𝘀𝘀𝗲𝘁 𝗔𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝘀𝗮𝘄 𝘁𝗵𝗲 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗶𝗻𝗳𝗹𝗼𝘄𝘀. These usually do well when investors don’t expect equities to do well.