Investors flock to safety on concerns over peaky markets - BofA

[May 28, 2021]  LONDON (Reuters) - Safe-haven assets such as cash and gold funds drew investors during the week to Wednesday, BofA's fund flow statistics showed on Friday, a sign of growing concern over inflation and the potential roll back of central bank stimulus.

Gold bars are pictured on display at Korea Gold Exchange in Seoul, South Korea, August 6, 2020. REUTERS/Kim Hong-Ji

Money market funds attracted $68 billion, the largest weekly inflow since April 2020, BofA said citing EPFR data. Gold sucked in $2.6 billion, the largest inflow in 16 weeks.

But investors did not stop chasing stocks, which took in $17.9 billion, though BofA warned that peak positioning, policy and profits could lead to low or negative stock returns in the next 3-6 months.

Some half-a-trillion dollar has gone into equity funds so far this year and that's more than the previous 12 years combined, BofA added.

(Reporting by Thyagaraju Adinarayan; editing by Sujata Rao)

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