In spite of the US Federal Reserve’s (Central Bank’s) intention to keep raising interest rates, investors continued to buy bonds and shares, according to an economic analysis published today, Friday, by the Bank of America Banking Group; this has traditionally reduced the attraction of stocks.
According to a study conducted by a group of experts under the direction of Michelle Hartnett, securities investment funds worldwide attracted new assets totaling $7.
9 billion in the seven days leading up to August 17 of this year.
The value of new purchases in the market exceeded the value of sales by $9.2 billion for the second week in a row, while the value of purchases of global bonds exceeded the value of sales by around $500 million due to increased investment in bonds with good credit ratings.
The Federal Reserve’s interest rate decision has caused very little concern in the stock market, according to a Bank of America report, as traders anticipate the central bank to keep raising rates because they anticipate inflation to be between 5 and 6 by next spring, significantly higher than the bank’s target rate of 2 annually.
Bank of America: Demand for purchasing assets has increased despite rising interest rates.
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