LONDON (Reuters) – Investors poured cash into money market funds at a record pace in the first weeks of this year, with an additional 15 billion in the week to Wednesday, Bank of America Global Research said on Friday. It announced that it had poured US dollars into stocks.
BofA’s report shows U.S. small-cap funds posted $5.1 billion in the week ending Wednesday, the biggest weekly inflow since June 2022, as stock market gains extend beyond mega-cap stocks. It showed that there is.
In its weekly summary of inflows and outflows to global markets, citing data from EPFR, BofA said that from the first few weeks of 2024 through February 21, inflows remained at an annualized rate of $1.3 trillion. He said that
Investors often choose cash when they are unsure, but with interest rates high and unlikely to fall in the short term, money is flowing into cash-equivalent money market funds. .
Investors poured $15.2 billion into bonds, including $10.2 billion into investment-grade bond funds, marking the 16th consecutive week of inflows in 2021, with the S&P 500 hitting a new all-time high, according to BofA. It was the longest capital inflow since March.
This month, the S&P breached the 5,000 mark for the first time in history thanks to gains in the so-called “Magnificent Seven” of most valuable stocks, including Apple, Microsoft and AI darling Nvidia.
BofA’s Bullish & Bearish index has remained at 6.6 over the past week, tipping it into “bullish territory,” but the bank said this is not too far.
On a scale of 10, readings above 6 stray into bullish territory, and below 5 move into bearish territory.
“The positioning is not yet extremely bullish, but it won’t take long,” BofA said in a report.
Last week was the first time since September that both energy and materials funds recorded weekly inflows, the report said.
(Reporting by Amanda Cooper; Editing by Alan John and Susan Fenton)
