To say that this week’s Pfizer virus news was seen by markets as positive for risk assets would be an understatement: according to BofA’s Chief Investment Strategist Michael Hartnett, this week’s inflow into equities was an all-time record of $44.5 billion…
- US equities $32.5bn inflow = 2nd largest ever;
- EM equities $6.5bn inflow = 5th largest ever;
- Tech $2.0bn inflow = 12th largest ever;
- Energy $1.5bn inflow = biggest since Apr’15;
- Financials inflows ($1.3bn), US Treasury redemptions ($4.0bn) both largest in 6 months.
At the same time, another $10.2Bn went into bonds, $0.8bn into gold, with $17.8bn leaving money market (cash) funds, which is a testament to the groundbreaking nature of the news, which if actually results in a successful cure would indeed have tremendous consequences for markets as Monday’s 15-sigma rotation out of momentum and into value showed.