Investors are putting billions of dollars into cash and stock funds as they seek protection from surging inflation. Cash saw the biggest inflows in six weeks at about $54 billion, while exchange-traded funds led additions of about $12 billion into equities in the week through June 8, according to Bank of America Corp. note, which cited EPFR Global data. US stocks were the primary beneficiaries of inflows with about $13 billion, while bond fund outflows resumed, the data showed.
Investors will be closely watching US inflation data today for clues on the pace of monetary tightening. Bank of America’s Michael Hartnett said in the note that the US economy is “a couple of bad data points away from ‘recession’.” “We’re in technical recession but just don’t realise it,” he wrote. “In short, inflation shock not over, rates shock just starting, growth shock coming, no release valve from peak in yields, bear market rally too consensus.” US large-caps saw inflows of $14.