By Investing.com Staff
BofA Securities investment strategists discuss how governments could be "locking in" high inflation given high core inflation, low unemployment, and negative real policy rates yet almost all central banks are on hold or close to ending their rate cut cycle.
Looking at weekly flows, the strategists note cash saw its first weekly outflow in 8 weeks and the biggest outlook since Feb '22. Meanwhile, $4.6 billion flowed into bonds, $70 million came from gold, $2.6B from equities, and $65.3B from cash. Emerging market debt showed its first inflows in 10 weeks.
BofA private clients, which have $3.1 trillion in assets under management, hold 59.9% in stocks, 21.4% in bonds, and 11.9% in cash. They pulled money from T-bills for the second consecutive week, while money flowed to bonds and cash and out of equities. Looking at sectors, private clients were buying financials, and selling REITs, bank loans, energy, and tech ETFs for the past four weeks.