LONDON (Reuters) - A record rush to big technology stocks saw equity funds bagging $27.8 billion inflows last week with the ongoing ultra-easy monetary policy creating the “mother-of-all asset bubbles”, BofA said on Friday.
Global market capitalisation has risen $50 trillion, or $6.2 billion per hour, since last March, almost ten times faster than the pace seen in the immediate aftermath of the 2008 global financial crisis, the U.S. investment bank said.
Big tech attracted a record $19 billion inflows in the last six weeks. Bond funds took in $12.6 billion in the week to Wednesday, BofA’s flow data showed.
Outflows of just $300 million marked the largest drawdown in emerging markets debt since July 2020, while emerging market stock funds saw $5.3 billion inflows.
Meanwhile, surging inflation expectations has led to real assets outperforming financial assets so far in 2021, prompting investors to pour $1.2 billion into Treasury inflation-protected securities (TIPS).