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Bank of America data revealed today, Friday, that investors injected a record $ 68.3 billion into equity funds during the week ending March 17, even as a sharp rise in government bond yields had lowered the surge in the Nasdaq index.
And U.S. equity funds drew in $ 53 billion, as super-easy monetary policy continued to stimulate risk appetite.
But Bank of America has warned of tightening global financial conditions, in light of eight interest rate hikes around the world since the start of this year in exchange for five cuts.
Meanwhile, the US Federal Reserve has kept its promise to go ahead and ignore inflation and keep interest rates close to zero until at least 2024. But 10-year yields rose sharply on Thursday, to 1.75%.
The move sparked massive sell-offs on Wall Street, as the Nasdaq 100 Index, full of tech companies, fell 3.1%, wiping out more than $ 400 billion in company stocks in a single session.
Global equity funds have attracted $ 347 billion since the start of this year, matching the record inflows of securities in 2017.
In general. On an annual basis, Bank of America said this year’s inflows were $ 1.6 trillion, a remarkable level.
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