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More money has flowed into the stock market over the past 5 months than in the past 12 years, according to Bank of America
More money has flowed into the stock market over the past 5 months than in the past 12 years, according to Bank of America
Matthew FoxApr 24, 2021, 01:38 IST
Peter Tuchman, right, works among fellow traders at a post on the floor of the New York Stock Exchange, Wednesday, March 4, 2020.AP Photo/Richard Drew
Money is quickly pouring into the
stock market as the S&P 500 trades near record highs.
Bank of America said $602 billion had flowed into global
stocks in the past five months, compared with $452 billion in 12 years.
MUMBAI: While the second wave of Covid-19 may have stalled the rally in equities, shares of companies in the cyclical sectors may come roaring back going ahead as the availability of more vaccines is going to improve the visibility on when the economy can return to normalcy, analysts say.
The government last week allowed fast-track approval for the Covid-19 vaccines of Pfizer, Johnson & Johnson and Moderna under the emergency use authorisation route, which will allow India to accelerate its vaccine drive that has got bogged down in shortages.
The breathtaking rally seen in the cyclical stocks since earlier this year halted in the past few sessions, as investors shifted money to defensive sectors such as pharma and IT. Their concern was that the rapidly spreading virus and vaccine shortage could result in the return of tough lockdowns across states, which would have dented economic and earnings recovery in 2021-22.
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Nearly a week since the implosion of Archegos first spilled into public view, former Tiger Cub trader Bill Hwang s family office and its slew of prime brokers are still in the eye of the storm. This story, as we ve heard it so far, is clearly missing some pieces, Andrew Beer, managing member of Dynamic Beta Investments, said in an interview.
The bank s US regime indicator has shifted to mid-cycle, a phase where inflation is typically strongest. Bank of America graph of average annualized CPI and PPI changes Bank of America
Bank of America s most recent fund manager survey on March 16 highlights inflation is the top tail-risk for investors and has replaced COVID-19 for that number-one spot in the survey for the first time since February last year. Bank of America fund manager survey graph Bank of America
This warning echoes similar sentiments from Morgan Stanley last week, whose inflation surprise index had turned positive for the first time in two years.