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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