LONDON (Reuters) – Global investors yanked almost $26 billion out of cash funds over the last week and piled $17.6 billion into bonds, another $8.6 billion into stock markets, and the third highest amount on record into mortgage backed securities.
“(The) recent blue wave bullish consensus reflects liquidity addiction, new ‘buy-the-rip’ not ‘buy-the-dip’ mentality, rather than future policy,” Bank of America (NYSE:) said in a research note, referring to rising chances of a clean sweep by Democrats in the upcoming U.S. elections.
BofA analysts, citing data from financial flow tracking firms such as EPFR, said a “chunky” $24 billion was pumped into equity funds in the last four weeks.
A “big” $12.2 billion was invested in investment grade and high-yield bond funds in the week to Wednesday.
Investors have pulled $237 billion from money market funds, the U.S. investment bank said, highlighting a still-high $4.4 trillion held in cash.
Throwing money at everything, BofA said investors also pumped $1.2 billion into gold funds. Mortgage backed securities saw inflows of $1.8 billion.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function()
{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);
by : Reuters
Source link
