Investors rush to bonds and stocks: Bank of America


LONDON (Reuters) – Weekly flows data from Bank of America showed on Friday that investors rushed to invest in equity and bond funds, as unprecedented stimulus measures caused global markets to offset most of their losses as a result of Covid-19.
The investment bank noted that in the week ending June 10, a “huge” amount of $ 24.6 billion flowed into bonds while $ 13.8 billion was transferred to equity funds, the largest amount in nine weeks.
The bonds issued by the municipalities witnessed record inflows, while the bond funds classified at investment grade, scored the second largest inflow ever during the week ending June 10.
Meanwhile, Bank of America’s “bull and bear” index rose from 0.4 to 0.9, but remains close to levels that herald a drastic fall.
But stock markets fell on Thursday and bonds rose after bleak economic forecasts from the Federal Reserve and the fears that a higher number of new cases of coronavirus could harm the rush towards opening economies.
Moataz Mohamed prepared for the Arab publication

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