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Investors are changing their strategy: from risks to stability


August, 09 2024
watermark Economic news

According to a Bank of America report, during a week of falling stock markets, cash has become the leader in popularity among investors. Money market funds raised $80.8 billion, while bond and equity funds received only $10 billion and $9.7 billion, respectively. Cryptocurrencies lost $100 million, and investors withdrew $500 million from gold. 


The Japanese stock market attracted $4 billion, which was the third largest inflow in a year. Europe saw the most significant outflow of funds from the stock market since September — $2.4 billion. Financial sector stocks experienced the largest outflow since November, amounting to $1.1 billion. 


At the same time, shares in the technology sector continue to attract investments for the sixth week in a row – totaling $3.3 billion. 


Bank of America strategists note the pressure of high real interest rates on the US consumer and labor markets. They consider a reduction in interest rates inevitable, but emphasize that its effectiveness will depend on the magnitude of the reduction.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.