(C) Reuters. Traders wearing masks watch as the Opening Bell rings, on the first day of in-person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the NYSE in New York
LONDON (Reuters) – Equity funds sucked in more than $26 billion in the week to Sept. 16, BofA research showed, as investors chased U.S. stocks after a sharp selloff earlier in the month led by technology stocks.
In a “frenzy into U.S. stocks”, investors pumped nearly $24 billion into equities in the world’s top economy, the largest such inflows since March 2018, said BofA. The inflows come after 10% pullback in Nasdaq 100 (NDX) in early September.
In a recent fund manager survey by BofA, it found that a “tech bubble” is now the second biggest tail risk after a COVID-19 “second wave” as long U.S. tech remained “the most crowded trade” for the fifth straight month.
Still, the rally rumbles on with the Nasdaq 100 up 27% year-to-date.
“Massive weekly rotation to stocks from cash,” said BofA analysts, citing data from financial flow tracking firm EPFR.
A whopping $58.9 billion left cash funds and gold saw its first outflow in four months of $400 million.
Meanwhile, emerging market equity funds saw $2.5 billion outflows but developing debt funds enjoyed an eleventh straight week of inflows.
Stocks enjoy biggest weekly inflows since March 2018: BofA
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.