Bank of America – Investors See in 2024 with $123 Billion Cash Inflow

<p>According to Bank of America, by shuffling $123.1 billion into cash within a mere seven days,
investors have set a cash influx record not witnessed since March 2023. </p><p>This lively cash shift, as narrated in a <a href="https://www.tbsnews.net/economy/stocks/investors-kick-2024-123b-record-cash-shift-bofa-771494" target="_blank" rel="nofollow">report</a> by the multinational bank and investment services provider, is
an incredible commencement for the year, especially during the first week.</p><p>Cash is King?</p><p>The $123.1 billion cash cascade witnessed from investors is not a blip,
it's a continuation of the trend set in 2023. Last year saw an unparalleled
yearly cash inflow of $1.3 trillion, <a href="https://www.reuters.com/markets/currencies/global-markets-flows-urgent-2023-12-22/">as
reported by Reuters</a>, as prudent investors, wary of risks, sought refuge in
the safe haven of assets, spurred by higher interest rates that tempered the
allure of stocks.</p><blockquote><p lang="en" dir="ltr">Investors kick off 2024 with $123 bln record cash shift -BofA <a href="https://t.co/Qi4jW9hnHw">https://t.co/Qi4jW9hnHw</a> <a href="https://t.co/4qvpdjQH98">pic.twitter.com/4qvpdjQH98</a></p>— Reuters (@Reuters) <a href="https://twitter.com/Reuters/status/1743268722381308017?ref_src=twsrc%5Etfw">January 5, 2024</a></blockquote><p>Stocks and bonds continued to attract, with $10.6 billion for bonds and
a flirtatious $7.6 billion for stocks. However, gold, normally everyone’s old
favorite, and <a href="https://www.financemagnates.com/trending/costcos-golden-obsession-bullion-and-bulk-buying/" target="_blank" rel="follow">certainly loved by frequenters of Costco</a>, was snubbed with
dismissal of $0.8 billion.</p><p>Continued Inflows to Equities</p><p>In terms of <a href="https://www.financemagnates.com/terms/e/equities/">equities</a>, this marked the second consecutive week of inflows.
Indeed, eight out of the past ten weeks have witnessed an inflow totaling a
staggering $82 billion. However, global equities prepare to bow out of their
nine-week winning spree, with investors retracting their bets on aggressive
central bank rate cuts.</p><p>S&amp;P 500 Stutters</p><p>As the S&amp;P 500 flaunts its 14% growth since the end of October, it
took a tumble of 1.1% over Wednesday and Thursday, eliciting investor jitters.
The tantalizing prospect of imminent interest rate cuts from the Federal
Reserve painted a shadowy backdrop, prompting Bank of America to declare,
"Fed and yields dictating credit and stocks."</p><p>Energy stocks, like forgotten wallflowers, endured their seventh
consecutive week of exits, marking the most substantial departure since the
jubilant days of July 2023, with a whopping $1.0 billion farewell. In contrast,
petite U.S. small-cap stocks pirouetted gracefully, recording their fifth
consecutive weekly cash infusion – a charming $2.3 billion. </p>

This article was written by Louis Parks at www.financemagnates.com.