investors subtracted $ 109 billion in bonds during the week

The coronavirus-induced tidal wave of liquidation has led investors to exit almost all possible assets, according to weekly data released Friday by Bank of America (BoFA), which reported a record exodus of bond funds by u $ s109,000 million.

Contagions and deaths from the disease continue to rise, causing a savage liquidation in the stock markets; Investors subtracted $ 20.7 billion net from exchanges worldwide, with a record $ 20,200 in just one day.

Another record was set on Monday when about $ 4.7 billion flew from emerging market bond funds, while the weekly peak level of outflows climbed to $ 18.8 billion.

World stock markets have lost almost $ 23 trillion in market value since the maximum levels reached in February.

The sharp swings are widespread and include a vast liquidation of markets considered safe havens, such as gold and US Treasury bonds. The bullion suffered its fifth most serious day of exodus in the seven days this Wednesday, according to BofA data.

Meanwhile, investors accumulate cash and added $ 95.7 billion to the recovered total of $ 137 billion dollars amassed last week.

Unprecedented quarantines in big cities around the world and the potential economic consequences have led central banks and governments to issue gigantic monetary stimulus programs.

This Thursday, the BoFA warned that the United States has already entered a recession due to the effects of the pandemic on the economy, although it anticipated that it will have a short duration.

The banking entity calculated that the North American economy “will collapse” in the second quarter of the year, with a 12% decrease in gross domestic product (GDP) while, throughout 2020, growth will suffer a 0.8% contraction.

“We are officially declaring that the economy has fallen into a recession, joining the rest of the world, and it is a deep fall in which jobs will be lost, wealth will be destroyed and confidence will fall,” said bank economist Michelle Meyer. , in a note to investors.

In his forecasts, he considered that in the second quarter about one million jobs will be lost per month, with which the unemployment rate, which stood at 3.5% in February, will practically double, reflecting the “magnitude economic shock “from the coronavirus.

Bank of America forecasts do not anticipate the start of the economic recovery until April, with a “very slow return to growth thereafter and with the economy normalizing in July.”

Regarding the position that the Trump government should take in this context, Meyer assured that “there should not be an upper limit for the size of the stimulus, in our opinion.”

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