2023-06-02 09:37:27
A frenzy over artificial intelligence (AI) has prompted record inflows into tech equity funds. A Bank of America (BofA) report citing data from EPFR Global showed.
BofA strategist Michael Hartnett said May’s theme was the “baby bubble” around AI. Tech stock funds received a record $8.5 billion in inflows in the week ending May 31, according to EPFR data.
Hartnett said in the report that “monopolistic tech companies” are the winners, putting pressure on small businesses with their pricing power. He explained that the technology-heavy Nasdaq 100 index is the best in comparison to the Russell 2000 index of small caps.
He added that the contrarian trading at the moment is to sell AI-related stocks and buy Hong Kong stocks.
Data show that $14.8 billion in total inflows into global equity funds. Bond funds had inflows of $1.1 billion.
Original title:BofA’s Hartnett Says AI Frenzy Drives Record Inflows Into Tech(excerpt)
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