Investor conviction continues for bonds, returns for equities – BofA 

LONDON (Reuters) – Investors poured cash into bonds and stocks in the week to Wednesday, showing conviction in both asset classes, a report from BofA Global Research showed on Friday, while they shed cash and gold.

Equity funds got a $16 billion injection while bonds saw inflows of $7.8 billion, BofA said citing EPFR data, as investors showed “no inflation fear”.

Gold, however, saw outflows of $1.3 billion while investors pulled $0.3 billion out of cash.

Emerging market debt and equity enjoyed their seventh straight week of inflows, totalling $8.3 billion.

BofA’s bull and bear indicator – a measure of market sentiment – is at its highest level since March 2022. It has clocked up its biggest three-month surge since August 2020, driven by strong emerging market flows and strong stock market breadth, BofA said.

(Reporting by Lucy Raitano, editing by Joice Alves)

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