Monday, December 4

Investors move away from havens and accumulate stocks

Investors piled into stocks and dumped assets such as cash, gold and bonds, considered safe havens, in the week to Wednesday, it announced Friday. Bank of America in your weekly report on market flows.

Stock funds attracted $30.5 billion, while bond funds suffered their first outflow in four weeks at $2.9bn, cash funds lost $43.5 billion and gold lost $100 million.

In fixed income, investment grade and high yield bond funds saw their biggest outflows in four weeks at $3.1bn and $2bn respectively.

Entries in emerging markets

In equities, US stocks attracted $9 billion, while emerging markets posted inflows for the fourth week in a row, raising $6.7 billion.

“Runaway inflation, high oil prices, supply bottlenecks and the unemployment rate among the G7 group at near 40-year lows equate to wage growth,” the bank wrote, adding that this means that the impact of interest rates will be global in 2022.

Meanwhile, there was little improvement in sight for the dollar.

“The US dollar fell despite 7 percent inflation (in the US), less than 4 percent unemployment, the Federal Reserve behind the curve (…) because global investors think that the United States will slow down fast, ”said analysts at the US bank.