New post
John Wang
in
Stocks
May 8 20:24

Investors are pulling out of stocks

Bonds and gold are in demand.
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According to the data from the Bank of America, investors withdrew US$16.2 billion from stocks in the last week. This is the biggest weekly pull out since the crash in March. 
Stock markets demonstrated an extraordinary recovery in April, despite the depressing macroeconomic data. The recovery of the broadset indexes has mostly been fueled by the tech shares. And yet the Bank of America stated that there are now signs of a “tech fatigue”. 
Tech shares underwent the first weekly outflows in 2020. Investors redeemed as much as US$43 million. At the same time gold and bonds experienced the biggest inflows in the last six weeks. US$32 billion went to high-yield bonds alone.
Last week investors brought US$11.3 billion into bonds market and US$53.5 billion into cash. Bank of America characterizes the general market sentiment as “extremely bearish”.