Stocks see large inflows as bonds, cash suffer

© Reuters. FILE PHOTO: A Wall Street sign outside the New York Stock Exchange in New York City, New York, U.S., October 2, 2020. REUTERS/Carlo Allegri/File Photo

LONDON (Reuters) - Investors shoveled money into equities and yanked funds out of bonds and cash as inflows into equity markets showed no signs of slowing despite huge equity market volatility, BofA's weekly flow show report showed on Friday.

On a weekly basis, global equities saw $46.6 billion of inflows while investors pulled $10.5 billion from bonds and $47.5 billion from cash, according to BofA using EPFR data.

Cash and money market funds saw the biggest four weekly outflows on record with over $35.2 billion exiting these funds even as a flattening streak on the yield curve shows no signs of abating.

Among other notable weekly highlights, U.S. large cap equity funds saw the biggest inflows at $34.1 billion while the cumulative equity flows on a year-to-date basis hit $153 billion, outpacing a similar period in 2021. Emerging market equities also saw sizeable inflows.

"Aggressive Fed at the moment of overvalued asset markets is not normally recipe for big returns," said analysts at BoFA noting that 46% of all Nasdaq companies were 50% below their 52-week highs one week ago.

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