Investors are buying high-risk, liquidity stocks that are still in the lead

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Bank of America logo in New York with a photo from the Reuters archive.

LONDON (Reuters) – A note of Bank of America on fund flows showed on Friday that investors have strengthened their positions in high-risk bond funds as the new consensus in the market is “to buy what the Federal Reserve buys”.

In the week that saw no risk aversion, investors accumulated $ 126.4 billion in cash, leaving the emerging market stocks.

High-risk bond funds attracted $ 4.3 billion in the week ending Wednesday, as sentiment received support from the US central bank’s pledge to purchase debt rated at a high-risk level.

Stock markets saw a $ 7.3 billion influx in a week to Wednesday, according to data from Bank of America. Emerging market equity funds reported inflows of $ 7.4 billion.

Global healthcare and technology shares were showing resilience in the face of the current shock of the virus, with investors pumping a total value of $ 4.9 billion in both sectors.

The American bank said that health care and technology stocks currently account for 42 percent of the global stock market, a significant increase from 24 percent in 2006. This came at the expense of energy and financial stocks that fell to 18 percent from 36 percent during the same period.

Moataz Mohamed prepared for the Arab publication





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