Investors continue to shift from stocks to bonds and cash as stocks reach record highs and economic pressure mounts, Goldman Sachs analysts said.
US funds have recorded net cash outflows of $ 173 billion over the past 12 months, according to Goldman. The Bond and Cash Funds posted inflows of $ 259 billion and $ 592 billion, respectively. The 12-month flow of equities to bonds and money is the largest since 2008, analysts said.
"The slowdown in US economic growth, trade and geopolitical uncertainty, and near-record high initial equity allocations may have contributed to the shift from stocks to bonds and cash this year," they said.
Investors' appetite for risk appears to be lower than a year ago, Goldman noted. The S&P 500 has reached a record high, and stock buyers can see the peak as the right time to profit.
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