Investors flock to U.S ‘growth’ stocks as inflation fears fade – BofA
8:09 am Friday, August 12th, 2022
(Reuters) – Investors bought $7.1 billion in equities in the week to Wednesday, with U.S. ‘growth’ stocks recording their largest weekly inflow since December 2021 in a sign that fears over soaring inflation are receding.
Investors ploughed $11 billion into U.S equity funds in the week to Wednesday, their largest weekly inflow in eight weeks, but European stocks remained unloved, recording outflows for the 26th consecutive week, BofA said on Friday in a research note citing EPFR data.
Tech stocks recorded inflows of $0.6 billion, the largest in eight weeks, while so-called growth stocks which benefit when interest rates are low, got their biggest inflow since December 2021 of $2.5 billion.
BofA analysts said their ‘Bull & Bear’ indicator, which seeks to track market trends, remains unchanged at “extreme bearish” level.
(This story refiles to fix para 2 to remove extraneous words)
(Reporting by Lucy Raitano; editing by Sujata Rao)