Investors Rush to Cash as Bank Stress Grows and Recession Looms

Bank of America strategists have reported that investors are rushing to cash in the biggest surge since the onset of the pandemic due to concerns of an economic slowdown. The strategists predict that equity and credit markets will slump in the coming months. Global cash funds had inflows of nearly $143 billion, the largest since March 2020 in the week through Wednesday, adding up to more than $300 billion over the past four weeks. Money market funds assets have soared to more than $5.1 trillion, the highest level on record.