Investors Invest $30.5 Billion in Stocks, Ditch Safe Havens – BofA


A customer uses an ATM at a branch of Bank of America in Boston, Massachusetts, U.S., October 11, 2017. REUTERS/Brian Snyder

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LONDON, Jan 14 (Reuters) – Investors piled into stocks and dumped cash, gold and bonds, particularly safe havens, in the week ending Wednesday, BofA said in its weekly flow monitoring 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.

“No one is short in the equity market,” said Michael Hartnett, chief investment strategist at BofA.

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In fixed income, investment-grade bond funds as well as high-yield bond funds suffered their largest outflows in four weeks, at $3.1 billion and $2.0 billion respectively, a noted BofA.

In equities, US equities attracted $9.0 billion while emerging markets saw inflows for a fourth straight week, picking up $6.7 billion.

“Out of the ordinary inflation, high oil prices, supply bottlenecks and less recognized G7 unemployment near 40-year lows = wage growth,” Hartnett wrote, adding that this meant the shock rates would be global in 2022.

Meanwhile, there was little consolation for the dollar in sight.

“The U.S. dollar crashed despite 7% inflation, less than 4% unemployment, a lagging Fed…because the belief among global investors is that the United States is fading fast,” the analysts said. US banking analysts.

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Reporting by Karin Strohecker; Editing by Saikat Chatterjee

Our standards: The Thomson Reuters Trust Principles.


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