LONDON (Reuters) – Investors stampeded into stocks and out of cash as global equity funds witnessed their biggest inflows since March 2021 while large-cap U.S. funds enjoyed a record haul, a weekly round-up by BofA showed on Friday.
At $51.2 billion, stock funds attracted large inflows in the week to Wednesday as investors cut their cash holdings by $61.8 billion, the largest outflows from cash since July 2020, BofA said, citing EPFR data. Bond funds saw inflows of $16.1 billion.
“Monster reallocation cash-to-stocks as tax redistribution threat recedes and the Federal Reserve is expected to remain Wall Street-friendly,” analysts led by Michael Hartnett, chief investment strategist at the bank, said in a note, adding that liquidity conditions remain the easiest since July 2007.
(Reporting by Saikat Chatterjee; Editing by Tommy Wilkes)
