LONDON, Jan 14 (Reuters) – Investors piled into stocks and dumped safe-haven assets such as cash, gold and bonds in the week to Wednesday, BofA said in its weekly market flows report on Friday.
Equity funds attracted $30.5 billion, while bond funds saw their first outflow in four weeks at $2.9 billion, cash funds lost $43.5 billion and gold fell $100 million, BofA said. in its note based on EPFR data.
In fixed income, investment-grade and high-yield bond funds saw their biggest outflows in four weeks at $3.1 billion and $2 billion respectively, BofA found.
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 at near 40-year lows equate to wage growth,” Hartnett wrote, adding that this means the 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% inflation (in the United States), less than 4% unemployment, the Federal Reserve behind the curve (…) because global investors think that the United States will slow down fast”, US bank analysts said. (Reporting by Karin Strohecker. Editing in Spanish by Marion Giraldo)