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Investors Throw Money At Everything, Dump Cash - BofA

Investors have pulled $237 billion from money market funds, the U.S. investment bank said, highlighting a still-high $4.4 trillion held in cash.

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Global investors yanked almost $26 billion out of cash funds over the last week and piled $17.6 billion into bonds, another $8.6 billion into stock markets, and the third highest amount on record into mortgage backed securities.

"(The) recent blue wave bullish consensus reflects liquidity addiction, new 'buy-the-rip' not 'buy-the-dip' mentality, rather than future policy," Bank of America said in a research note, referring to rising chances of a clean sweep by Democrats in the upcoming U.S. elections.

BofA analysts, citing data from financial flow tracking firms such as EPFR, said a "chunky" $24 billion was pumped into equity funds in the last four weeks.

A "big" $12.2 billion was invested in investment grade and high-yield bond funds in the week to Wednesday.

Investors have pulled $237 billion from money market funds, the U.S. investment bank said, highlighting a still-high $4.4 trillion held in cash.

Throwing money at everything, BofA said investors also pumped $1.2 billion into gold funds. Mortgage backed securities saw inflows of $1.8 billion.

(Reuters)