Investors piled into stocks, ditching cash, gold and bonds: BofA

A customer uses an ATM at a Bank of America branch in Boston, Massachusetts, on October 11, 2017, U.S. In the week to Wednesday, BofA said in its weekly flow tracking note that investors piled into stocks and ditched cash, gold and bonds, especially safe haven ones, as a result of the week to Wednesday.

Equity funds attracted $30.5 billion, while bond funds suffered their first outflow of $2.9 billion in four weeks, cash funds lost $43.5 billion and gold at $100 million, BofA said in a note based on EPFR data.

Michael Hartnett, chief investment strategist at BofA, said that nobody is short the equity market.

In the last four weeks, investment grade and high yield bond funds suffered their biggest outflows at $3.1 billion and $2.0 billion respectively, according to BofA.

The U.S. stocks attracted $9.0 billion in equity, while emerging markets saw inflows for a fourth week, raking in $6.7 billion.

Inflation off-the charts, oil prices are strong, supply bottlenecks remain, and less-acknowledged G 7 unemployment rate close to 40 year lows wage growth, Hartnett wrote, adding that rates shock would be global in 2022.

There was little solace for the dollar in sight.

The U.S. dollar fell despite 7% inflation, less than 4% unemployment, behind-the- curve Fed because global investors believe that the U.S. is fading fast, analysts at the U.S. bank said.