In the latest research, Bank of America stated that for the week ending September 25, cash funds had inflows of over $129 billion. It is the biggest influx in the last eighteen months.

In the meanwhile, $25.4 billion was invested in stocks, with $10.9 billion going into US stocks. This makes the year-to-date inflows into equities $363 billion, the second-largest amount on record.

Emerging markets saw the fourth-highest inflow of 2024 at $9.7 billion, while European stocks saw their largest inflow in five months at $600 million. Tech fund inflows are expected to reach a record high of $60 billion this year, despite small outflows of $200 million.

Wall Street's conviction bets, according to BofA's analysts, combine short positions in China and 30-year Treasuries with long holdings in gold and technology.

Additionally, the BofA team advises investors to shift their portfolios towards foreign stocks in order to take advantage of China's continuous stimulus program, which attempts to support development by actions like lowering the reserve requirement ratio (RRR) and increasing household savings through lower mortgage rates.

The bank did issue a warning, stating that "geopolitical risks could soar if this China stimulus doesn't work."

Investment-grade funds witnessed a $10.2 billion inflow among other weekly flows, increasing YTD inflows to an annualised $415 billion, a record pace.

On the other hand, US Treasuries had a $1.6 billion redemption, the biggest in four weeks since December 2023.

(Sources: investing.com, reuters.com)