LONDON: Buyers dumped tech shares on the quickest tempo on file and continued to pour cash into investment-grade bonds and money equivalents within the week to Wednesday, Financial institution of America stated on Friday, citing information from EPFR.
Expertise shares noticed $four.four billion in outflows prior to now week, “the largest outflow up to now” and the primary outflow in 9 weeks, BofA stated in its weekly spherical of world and world market fund flows, with out specifying how far his figures went. .
The information covers the week to Wednesday, March 6, when US tech shares fell sharply. That included Apple, whose shares completed 2.eight % decrease after a analysis report confirmed iPhone gross sales in China fell 24 % year-on-year within the first six weeks of 2024.
Since then, tech shares have rebounded considerably, and the S&P 500 hit one other closing excessive on Thursday. Its massive beneficial properties in latest months have been pushed primarily by massive tech corporations.
There have been inflows of $32 billion in money and $13.three billion in investment-grade bonds, the most important inflows since September 2020, BofA stated.
Money-equivalent cash market funds have seen important inflows over the previous 12 months because of the excessive yields of very short-term authorities debt they maintain.
“$6 trillion to $7 trillion in cash market funds and all of that’s incomes 5% curiosity … perhaps that's what offers all people the arrogance to invest,” BofA stated.
Along with expertise, shares posted their seventh straight week of inflows, with buyers including $6.9 billion. Actual property shares stood out with inflows of $1.2 billion, essentially the most in two years.
Crypto funds noticed inflows of $1.9 billion this week. Bitcoin, the world's largest cryptocurrency by market worth, hit a file excessive of $69,202 on Tuesday earlier than retreating.
