Investors Storm Into Money Markets, Gold As Equity Exuberance Ebbs
LONDON: Investors stormed into money markets and gold funds in the past week as exuberance towards equities faded slightly, BofA’s weekly flow show stats showed on Friday.
Cash funds saw $29.1 billion inflows and gold attracted $1.5 billion, marking the largest inflow since August in the week to Wednesday, the U.S. investment bank said.
BofA said the 2020 “winning flow trends” trickled into 2021 and recommended selling equities on the back of “frothy prices” and greedy positioning”.
“Sell the Vaccine: frothy prices, greedy positioning, inflationary and desperate policy makers, peaky China and consumer all ultimately toxic brew in 2021,” said Michael Hartnett, BofA’s chief investment strategist.
Global equity funds saw $11.2 billion inflows, mainly driven by the U.S. Investors pulled $1.6 billion from emerging market equities, the first outflow in 16 weeks.
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