The big switch into risky assets? from bills to stocks

 

 Bank of America tracks the flows of client money and found that this week has shown a record flow out of T-bills. Forget about the safe asset. It seems like private clients are saying that it is time for holding risk-on assets. 

Inflation surprised to the downside. Recession fears have been reduced. The chances of further Fed hikes have also been diminished, so the word out; get into riskier assets. Flows suggest that investors are putting their money to work in equities, but it may not be in the high performing overvalued stocks. A switch from caution to risk-taking will disrupt the market behavior of the last month and can explain some of the recent short covering and movement to higher net long positions by active managers and hedge funds.