Investors shifted more cash into money market funds for nine consecutive weeks, suggesting they are somewhat nervous even as Wall Street is hovering at all-time highs, according to a private report released on Wednesday. Assets of money market funds, which are considered nearly as safe as bank accounts, increased by $19.13 billion to $3.156 trillion in the week ended June 25, the Money Fund Report said.
During this nine-week stretch, total fund assets have risen by $146 billion.
Taxable money market fund assets grew by $17.92 billion to $3.020 trillion, while tax-free assets climbed by $1.21 billion to $135.74 billion, according to the report, published by iMoneyNet.
Money managers' allocation to global equities dropped by 32 percentage points from May to a net 21% underweight, the lowest allocation to stocks since March 2009, a survey from Bank of America Merrill Lynch released last week showed.
On the other hand, their average allocation rose to 5.6% from 4.6% - the biggest jump since the 2011 debt ceiling crisis.
Even in light of those defensive moves by institutional investors, the S&P 500 hit a record high last Thursday on expectations the Federal Reserve would lower interest rates as early as next month to counter risk from global trade tension and sluggish domestic inflation.
Comments
Comments are closed.