Mubasher: Investors put record money into global equity funds as they turned away from gold as vaccine developments raise hopes that economies could close to normal in 2021.
Global stocks hit new all-time highs in December following record monthly gains in hopes of a rapid economic recovery next year, fueled by a vaccine.
Bank of America, quoting data from EPFR, said on Friday that equity funds saw cash inflows of $ 9.7 billion in the week ending December 2.
The US investment bank added that $ 115 billion had been deposited in equity funds in the past four weeks.
In contrast, gold – the safe haven – has seen an outflow of $ 9 billion in the past three weeks.
On the other hand, Bank of America indicated that if the dollar index falls below 90, there could be an unregulated decline in the world’s major currencies, leading to an unregulated rise in US Treasury yields.
The US bank expects global gross domestic product to rise 5.4 percent in 2021, the highest annual rate of increase in nearly half a decade.