Connect with us

Investing

Equity, bond funds see inflows as markets hit rough patch – BOFA

Equity, bond funds see inflows as markets hit rough patch - BOFA 1

LONDON (Reuters) – Investment flows into equities slowed while emerging market debt and equity funds saw the biggest redemption in ten weeks as concerns about surging inflation pressures and a China slowdown prompted investors to dump popular trades, BofA said on Friday.

Investors ploughed $11.8 billion into stocks and $77 million into bonds, in the week to Wednesday, according to BofA’s weekly flows note based on EPFR data.

Corporate credit across all classes saw money leave with high yield and emerging market debt seeing the biggest outflows at $1.8 billion and $2.5 billion each.

“The bear case is pandemic ending and so is $30 trillion of emergency policy stimulus and more bearish Wall St positioning reflects concerns regarding inflation and China,” analysts led by Michael Hartnett, chief investment strategist at the bank, said in a note recommending clients to “sell it”.

BofA analysts believe that policymakers and politicians are now worried inflation will damage growth and approval ratings, resulting in a broad-based policy pivot from pro-growth to anti-inflation policies.

The BofA Bull & Bear indicator meanwhile fell to 5.1 from 5.5, in the middle of the range as credit flows stall and the broader equity technical picture worsens.

(Reporting by Saikat Chatterjee; Editing by Karin Strohecker)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now