Global equity and bond funds saw modest inflows at the expense of cash and gold funds even as global markets went through a difficult period this week dominated by concerns about the U.S. debt ceiling and the energy shortages in Europe and China, according to a weekly BofA report. Friday.
On a weekly basis, investors invested $ 9.2 billion in stocks and $ 8 billion in bonds, while withdrawing $ 0.6 billion from gold and $ 6.6 billion from cash, respectively.
Deeper and broader investment flows have been invested in the financials, energy and small cap sectors, while emerging market debt funds have seen large outflows thanks to rising yields bond.
“If the 2010s were deflationary, driven by excess debt and the aging of the population, the 2020s will be inflationary, driven by economic isolationism due to the breakdown of supply chains and government intervention then that central banks want inflation, ”analysts led by Michael Hartnett, the bank’s chief investment strategist, said in a note.
They noted that the U.S. government had spent $ 1.2 billion per hour in 2021 and $ 14.2 trillion since January 2020 and was struggling to pass new fiscal stimulus packages.
Democratic leaders in the US House of Representatives have delayed the planned vote on a $ 1 trillion bipartisan infrastructure bill that was set for Thursday.
Source: Reuters (by Saikat Chatterjee)