Global equity funds received record inflows of $ 58.1 billion over the past week, data for weekly fund flows from Bank of America showed on Friday as investors withdrew money from monetary funds and eased their exposure to bonds.
Global equities reached an all-time high this week as investor sentiment was boosted by prospects for earnings and an economic recovery.
The appetite for stocks has seen excessive positioning among US investment bank’s wealth management clients, with allocations of 63.1% for equities, the highest ever, and 19.1% for debt, which is the lowest.
The investment bank said that the largest amount of inflows last week went to US stocks, which received inflows of $ 36.3 billion, the best ever, while funds investing in large companies received $ 25.1 billion in the week ending on Wednesday.
Relentless buying in the shares of big tech companies has been a key feature of recent investment trends. Technology funds attracted $ 5.4 billion, beating last week’s record inflows of $ 4.2 billion.
The bank’s “bull and bear” index reached 7.7, just below “extremely bullish” levels, indicating overheating activity.
The risk appetite has drawn flows of cash and gold.
Monetary funds lost $ 10.6 billion, while gold recorded its first flow of flows in two months, with the exit of $ 800 million.
Bond funds saw inflows of $ 13.1 billion.
The article Global Equity Funds Receiving Record Inflows Of $ 58.1 Billion was written in the stock exchange newspaper.