Investors boosted exposure to safe heaven assets in the week ended on Wednesday, including cash and gold funds, showed BofA flow data on Friday. The move could indicate growing concerns about early asset purchase tapering by global central banks and runaway inflation.

Money market funds saw inflows of $68 billion - the highest weekly inflow since April 2020, BofA reports, citing EPFR data. Gold inflows totaled $2.6 billion which is the highest in 16 weeks.

Nevertheless, equity demand remained relatively high as respective funds saw inflows of $17.9 billion. However, BofA warns that peak positioning, monetary policy and financial performance of companies could lead to low or negative stock returns in the next 3-6 months.

Equity funds have raised about half a trillion dollars since the beginning of the year - more than the aggregate over the previous 12 years, BofA added.

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