LONDON (Reuters) – Investors once again stormed into stocks last week with inflows in the last three months soaring to a record $255 billion, BofA’s weekly flow data showed on Friday, as “extreme policy” led to a 77% jump in world stocks from March lows.
Equities attracted $21.6 billion in the week to Wednesday, mainly driven by emerging markets. In business sectors, financials and energy gained the most as the reflation trade gathered pace on expectations of further fiscal support from the new U.S. administration under Joe Biden.
“Extreme policy remains best explanation for extreme rally off lows in 2020, consensus macro boom in 2021,” said Michael Hartnett, BofA’s chief investment strategist.
“We expect peak positioning & correction in Q1.”
(Reporting by Thyagaraju Adinarayan, editing by Karin Strohecker)
