Investors put $30.5 billion into stocks, ditch safe havens - BofA
Reuters
Published Jan 14, 2022 08:04AM ET
Updated Jan 14, 2022 08:15AM ET
LONDON (Reuters) - Investors piled into stocks and ditched cash, gold and bonds, especially safe haven ones, in the week to Wednesday, BofA said in its weekly flow tracking note published on Friday.
Equity funds attracted $30.5 billion while bond funds suffered their first outflow in four weeks at $2.9 billion, cash funds lost $43.5 billion and gold at $100 million, BofA said in its note based on EPFR data.
"Nobody is short the equity market," said Michael Hartnett, chief investment strategist at BofA.
In fixed income, investment grade as well as high yield bond funds suffered their largest outflows in four weeks at $3.1 billion and $2.0 billion respectively, BofA found.
In equities, U.S. stocks attracted $9.0 billion while emerging markets saw inflows for a fourth straight week, raking in $6.7 billion.
"Inflation off-the-charts, oil prices strong, supply bottlenecks remain, and less-acknowledged G7 unemployment rate close to 40-year lows = wage growth," Hartnett wrote, adding this meant the rates shock would be global in 2022.
Meanwhile there was little solace for the dollar in sight.
"U.S. dollar smacked despite 7% inflation, less than 4% unemployment, behind-the-curve Fed…because global investors’ belief is U.S. fading fast," analysts at the U.S. bank said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.