Bank of America said that investors are abandoning stocks and cash in favor of bonds, as they prepare for the risk of continued tightening monetary policy by the US Federal Reserve.
The American investment bank stated in a note that global stock funds were exposed to exits of $7 billion in the week ending on the twenty-second of February, and monetary funds lost $3.8 billion.
Bond investment funds attracted $4.9 billion, in the eighth consecutive week of inflows, the longest wave since November 2021.
US stocks suffered notable losses in the past weeks, with fears of continued inflationary pressures and the Federal Reserve's tendency to raise interest rates for a longer period than previously expected.
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