Investors poured a record $1.3 billion into funds managing tech shares over the past week, contrasting with a picture of ebbing inflow into world equity vehicles and losses on U.S. stock funds, Bank of America/Merrill Lynch (BAML) said on Friday.
The data, which tracks flows through Wednesday, also showed some alarm over junk debt, with some $600 million in outflows from high-yield bond funds, an eight-week high.
World stocks are witnessing their second day of losses, albeit after the longest daily winning streak in almost 11 years. A 0.4 percent pullback in U.S. tech shares on Thursday came after a 40 percent jump in 2017 alone.
"The recent pullback is a 'dress rehearsal' not the Big One," BAML told clients, noting the fall had been preceded by "insane gains" which had pushed for instance the value of U.S. tech firms and their U.S.-listed Chinese peers past the entire market capitalization of Germany's DAX index. (my emphasis)
Thoughts?
Submitted November 10, 2017 at 10:12AM by ChocolateTsar http://ift.tt/2mcgBVM
