Investors still flock to cash as stocks hit record highs

Investors poured cash into money market funds at the fastest pace on record in the first weeks of the year, and funnelled another $15 billion into equities in the week to Wednesday, Bank of America Global Research said on Friday. The BofA report showed the equity market rally is broadening beyond the mega caps, as U.S. small cap funds logged their largest weekly inflow in the week to Wednesday since June 2022, at $5.1 billion. BofA said in its weekly roundup of fund flows in and out of world markets citing EPFR data, that flows to cash were running at an annualised rate of $1.3 trillion in the first weeks of 2024 through to Feb. 21.