Stock Groups

Stocks see large inflows as bonds, cash suffer

by Mike Robinson

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© Reuters. FILEPHOTO: Wall Street signs outside New York Stock Exchange New York City New York City New York U.S.A, October 2, 2020. REUTERS/Carlo Allegri/File Photo

LONDON (Reuters] – Investors pumped money into equities, while bond and cash funds were drained. Despite huge volatility, inflows to equity markets did not slow down as BofA reported on Friday.

According to BofA EPFR data, $46.6 billion inflows were recorded weekly into global equity. Investors pulled $10.5 billion out of bonds, and $47.5 billion out of cash.

The largest four weekly cash and money market fund outflows were recorded at $35.2 billion. This despite a steady flattening trend on the yield curve.

Notable weekly highlights included the $34.1 billion inflows from U.S. large capital equity funds. However, the cumulative equity flows over the past year reached $153 billion. This is higher than the similar period 2021. Inflows into emerging market equity also were substantial.

BoFA analysts stated, “Aggressive Fed during the moment of overvalued assets markets is not normally recipe to big returns.” They also noted that 46% all Nasdaq firms were 50% lower than their 52-week highs one semaine ago.

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