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Investors load up on cash as taper fears threaten equities run – BofA

Investors load up on cash as taper fears threaten equities run - BofA

LONDON (Reuters) – Investors pumped $57.3 billion into cash funds and slowed down the pace of equity buying in the week to Wednesday as fears of higher inflation and a “taper tantrum” curbed risk appetite, according to BofA’s latest weekly fund flow report on Friday.

Worries that the U.S. Federal Reserve would scale back – or “taper” – its quantitative easing programme was highlighted as the biggest risk to markets in the investment bank’s latest fund manager survey.

Almost $14 billion went into bond funds and $10.5 billion into equity funds, BofA said citing EPFR data. Inflows to cash were the largest since March 2020, the peak of Covid-19 market crash.

Still, asset allocation to equities among fund managers are at 64.3%, highest ever. And, global stock markets are hovering near record high levels.

(Reporting by Thyagaraju Adinarayan; Editing by Dhara Ranasinghe)

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