Equity and bond funds see inflows as markets go through tough times – BOFA

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, September 29, 2021. REUTERS / Brendan McDermid

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LONDON, Oct. 1 (Reuters) – Global equity and bond funds posted modest inflows at the expense of cash and gold funds even as global markets hit a rough patch this week dominated by concerns about the US debt ceiling and energy shortages in Europe and China, a weekly BofA roundup aired on 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.

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“If the 2010s were deflationary, driven by excess debt and aging populations, the 2020s will be inflationary, driven by economic isolationism due to disrupted supply chains and government intervention as central banks want inflation, ”analysts led by Michael Hartnett, chief investment strategist at the bank, 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. Read more

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Reporting by Saikat Chatterjee; Edited by

Our standards: Thomson Reuters Trust Principles.


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