FILE PHOTO: Gold bars are pictured on display at Korea Gold Exchange in Seoul, South Korea, August 6, 2020. REUTERS/Kim Hong-Ji
May 28, 2021
LONDON (Reuters) – Safe-haven assets such as cash and gold funds drew investors during the week to Wednesday, BofA’s fund flow statistics showed on Friday, a sign of growing concern over inflation and the potential roll back of central bank stimulus.
Money market funds attracted $68 billion, the largest weekly inflow since April 2020, BofA said citing EPFR data. Gold sucked in $2.6 billion, the largest inflow in 16 weeks.
But investors did not stop chasing stocks, which took in $17.9 billion, though BofA warned that peak positioning, policy and profits could lead to low or negative stock returns in the next 3-6 months.
Some half-a-trillion dollar has gone into equity funds so far this year and that’s more than the previous 12 years combined, BofA added.
(Reporting by Thyagaraju Adinarayan; editing by Sujata Rao)