Largest inflows to gold since June '09 - BAML

Added 26th February 2016

A "gold rush" of $5.8bn, the largest three week inflow to gold since 2009, has coincided with the Federal Reserve "talking-down" the US dollar and rising investor fears of a recession and quantitative easing failure, according to Bank of America Merrill Lynch’s research team.

Largest inflows to gold since June '09 - BAML

BAML also noted big precious metals inflows generally of $2.6bn.

Meanwhile, the bank saw the largest inflows to high yield in 16 weeks and a risk-on shift in fixed income corroborated by the first outflows from treasuries in eight weeks.

Furthermore, there were signs of the bull market unwinding, with outflows from healthcare/biotech in 12 of the past 13 weeks, and Japan and Europe equity funds easing. Equities saw outflows of $2.7bn and bonds recorded "very modest" outflows of $0.2bn.

"European marketing this week corroborates the super-high cash levels revealed in Feb and scarcity of bullish views; everyone, including ourselves, is a "seller into strength" which means risk can squeeze higher short-term into policy events," said the bank.

Flows are nonetheless not close to "full-capitulation" levels; investors increasingly regard policy meetings as a selling catalyst -not a buying catalyst- so selling pressure resumes if policy disappoints, according to BAML.

Emerging market debt funds recorded the first inflows in seven weeks.

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel, Edinburgh

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Sofitel St James, London  

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall

OTHER STORIES FROM LAST WORD...