Thursday Dec 12, 2024
Thursday Dec 12, 2024
Wednesday, 17 February 2021 00:00 - - {{hitsCtrl.values.hits}}
LONDON (Reuters): A record $ 58.1 billion poured into global equity funds over the past week as investors pulled money out of cash funds and had a lighter exposure to bonds, BofA’s weekly fund flow data showed on Friday.
World stocks notched all-time highs this week as earnings and economic recovery prospects buoyed investor sentiment.
The rush to equities saw extreme positioning among the US investment bank’s wealth management clients, with 63.1% allocated to equities – the highest ever – and 19.1% to debt – the lowest ever.
The investment bank said a bulk of last week’s flows ended up in US equities with $ 36.3 billion inflows, the best ever, with large-cap funds taking in $ 25.1 billion in the week to Wednesday.
Relentless buying in big tech stocks has also been a major feature in recent investment trends. Tech funds attracted $ 5.4 billion, beating last week’s record $ 4.2 billion inflows.
BofA’s Bull and Bear indicator hit 7.7, just shy of “extreme bullish” levels in a sign of exuberance.
The risk-on mood triggered outflows from cash and gold. Cash funds lost $ 10.6 billion, while gold recorded its first outflows in two months with $ 800 million fleeing. Bond funds saw $ 13.1 billion inflows.
