Record cash inflows of $1.3 trillion in 2023, says Bank of America

According to statistics cited by BofA from EPFR Global, all asset classes had outflows in the week leading up to Wednesday, with the highest drain from equities since December 2022.

$26.1 billion from cash, $2.1 billion from bonds, $300 million from gold, and $21.3 billion from equities funds make up the breakdown of outflows.

“78% of market indexes are now trading above their 200-day and 50-day moving averages. Significant reversal from October 31st, when 76% of stocks were trading below the 50/200dma”, according to experts.

Regarding year-to-date flows, US Treasuries drew in a record $177 billion, investment-grade bonds experienced $162 billion in inflows, global stocks received $152 billion, US large caps gained $125 billion, and the tech sector gained $44 billion. The total amount of cash inflows was a record $1.3 trillion.

On the other hand, record redemptions of $33 billion from Treasury Inflation-Protected Securities (TIPS), $37 billion from debt classified as "Emerging Market," and a staggering $73 billion from US value funds were made.

Highlights include the Treasury outflows reaching $9.2 billion for the third week in a row, the longest run since February 2021. Additionally, the tech industry had a $0.7 billion outflow, the most in 15 weeks.

Based on the geographical split of stocks, developing markets experienced inflows of $500 million for the third consecutive week, while the United States witnessed outflows of $10.5 billion.

Japan had a resumption of outflows totalling $900 million, while Europe experienced outflows totalling $800 million for the 41st week.

(Sources: investing.com, reuters.com)