Record $1.3 trillion inflows to cash in 2023 – BofA

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The breakdown of outflows includes $21.3 billion from equity funds, $2.1 billion from bonds, $26.1 billion from cash, and $300 million from gold.

“78% equity indices now trading above 50dma & 200dma…big reversal from Oct 31st when 76% trading below 50/200dma,” analysts said.

As far as year-to-date flows are concerned, there was a record $1.3 trillion inflow into cash, US Treasuries attracted a record $177 billion, investment-grade bonds saw $162 billion in inflows, global stocks received $152 billion, US large caps garnered $125 billion, and the tech sector drew $44 billion.

Conversely, there were record redemptions of $33 billion from TIPS (Treasury Inflation-Protected Securities), $37 billion from EM (Emerging Market) debt, and a record $73 billion redemptions from US value funds.

Specific highlights include the third consecutive week of Treasury outflows at $9.2 billion, marking the longest streak since February 2021. Moreover, the tech sector experienced its largest outflow in 15 weeks at $0.7 billion.

In the regional breakdown of equities, the United States saw outflows resume at $10.5 billion, while emerging markets recorded a third consecutive week of inflows at $500 million.

Japan witnessed outflows resume at $900 million, and Europe sustained its 41st week of outflows, amounting to $800 million.