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Investors dump emerging market stocks, hoard bonds amid coronavirus angst

Investors pulled out $2.7 billion out EM stocks funds BofA's latest data crunching showed. The sugar-rush into bond funds attracted another $18 billion

Reuters  |  London 

markets, stocks, growth

worries have caused the biggest exodus from stocks funds since September BofA said on Friday, while the ongoing dive into bonds is on course to reach nearly $1 trillion by the end of the year.

pulled out $2.7 billion out EM stocks funds BofA's latest data crunching showed. The sugar-rush into bond funds attracted another $18 billion last week taking the year-to-date count to $130 billion and translating into almost a trillion dollars on an annualised basis.

That's twice the record level seen in 2019.

Flight to safety trend was further evident with pouring $1.2 billion into precious metals, which have seen 10 straight weeks of inflows.

Equities meanwhile attracted $2.2 billion, mainly led by Europe. The outbreak in China has seen taking shelter in assets that are more resilient to economic down cycles such as utility and healthcare stocks, BofA added.

First Published: Fri, February 21 2020. 22:01 IST
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