$28.7 Billion Injected into Global Equity and Bond Funds in a Week

Weekly data on fund flows from Bank of America revealed that investors poured nearly $15 billion into equity funds and $13.7 billion into bond funds in the week ending last Wednesday. Although the total money injected into stocks this year remains at a record level, the influx of flows has slowed in recent weeks, as major stock indices trade at extremely high valuations. Investors withdrew $1.3 billion from emerging market stocks while adding $1.4 billion to European stocks, according to Bank of America's analysis of EPFR data. With the Bank of Canada hinting at a reduction in bond purchases, Bank of America states that under the worst-case scenario, central banks in the United States, Eurozone, Japan, and the UK are expected to cut their purchases to $3.4 trillion from $8.5 trillion in 2020. The bank anticipates that the four major central banks will reduce bond purchases to $400 billion in 2022.