Hoping that the Covid-19 vaccine increased, investors rushed to pour money into stocks
Capital poured into global stocks increased shockingly to 71.4 billion USD, the record high ever, according to the latest publication of Bank of America (BofA).
|Last week alone, capital poured into world stocks reached $ 27 billion. Photo: Shutterstock|
Bank of America multinational bank (US based) said today 20/11 global investors rushed to put money into risky assets as hopes of vaccine resistant to Covid-19 soared. Last week alone, capital poured into stocks reached 27 billion USD, notably capital inflows strongly flowed into stocks that were strongly affected by the Covid-19 epidemic, for example banking, tourism, entertainment and oil. mine.
Investors around the world have not shown signs of leaving technology stocks when this group of stocks skyrocketed during the Covid-19 era. Technology stocks attracted more capital inflows of $ 2.4 billion last week, according to Bank of America. “We are in the process of rotating value stocks, but will not sell technology stocks,” Bank of America said.
Value stocks (shares of companies that investors deem undervalued), especially those of firms that are “sensitive” to economic cycles, have risen sharply after the firm. Pfizer’s pharmacy published positive results on the Covid-19 resistance vaccine trial. Specifically, Pfizer and BioNTech said that the results of the testing of Covid-19-resistant vaccines of these two units were more than 90% effective in preventing viruses.
Most recently, the company Moderna biotechnology (USA) also announced the preliminary test results of phase 3 showed that the vaccine developed by this company was more than 94% effective in preventing Covid-19.
Prospects for economic recovery soar after successive announcement of vaccine trial results. Investors’ sentiment has also been alleviated.
The year 2021 is predicted by the Bank of America as “five Covid-19 vaccines”. Accordingly, value stocks can outperform growth stocks. Similar trends are expected with high yield bonds and investment point bonds, as well as with small caps and large cap stocks.
In contrast, the positive results of the Covid-19 resistance vaccine trial led investors to sell off $ 4 billion from the gold market. However, forecasts show that the world gold market this year still recorded the best growth year since 2010.
“We believe that credit and stock prices will peak in the coming months thanks to optimism about the distribution of vaccine against Covid-19”, a representative of Bank of America said.