LONDON (Reuters) – A record $58.1 billion poured into global equity funds over the past week as investors pulled money out of cash funds and had a lighter exposure to bonds, BofA’s weekly fund flow data showed on Friday.
World stocks notched all-time highs this week as earnings and economic recovery prospects buoyed investor sentiment.
The rush to equities saw extreme positioning among the U.S. investment bank’s wealth management clients with 63.1% allocated to equities — highest ever — and 19.1% to debt — lowest ever.
The investment bank said a bulk of last week’s flows ended up in U.S. equities with $36.3 billion inflows, the best ever, with large-cap funds taking in $25.1 billion in the week to Wednesday.
Relentless buying in big tech stocks has also been a major feature in recent investment trends. Tech funds attracted $5.4 billion, beating last week’s record $4.2 billion inflows.
BofA’s Bull & Bear indicator hit 7.7 just shy of “extreme bullish” levels in a sign of exuberance.
The risk-on mood triggered outflows from cash and gold. Cash funds lost $10.6 billion, while gold recorded its first outflows in two months with $800 million fleeing. Bond funds saw $13.1 billion inflows.