Gold and bonds are on track for record flows this year

Stocks, cash, gold and bonds are on track to record some of the biggest annual flows ever, in a market that is witnessing a breakdown in the traditional relationships between asset classes. Equity funds are on track to record inflows of $693 billion in 2025, based on year-to-date figures, according to Bank of America Corp’s calculations based on EPFR Global data. Equity funds record third highest annual inflow The bank’s analysts wrote in a note that this would be the third highest total ever. As for cash liquidity funds, they are on track to attract inflows worth $1.1 trillion, their second largest ever. Investors are expected to pour record amounts into gold and investment-grade bonds, worth $108 billion and $415 billion, respectively. Also Read: Gold Recovers After Sharp Losses Amid Concerns Over Excessive Rise. The unexpected US trade policies have formed the focus of a turbulent year in the markets, testing investors’ ability to choose between asset classes. Controversy also rose over the path of the Federal Reserve’s interest rates, and the US government shutdown caused a gap in economic data, further complicating the scene. Artificial intelligence drives stocks higher However, stocks rose to record levels as the big wave of spending on artificial intelligence continues, while corporate profits and the economy remain intact. Bond yields fell as borrowing costs fell globally, while gold jumped to its highest levels ever thanks to its appeal as a safe haven in times of uncertainty. You may be interested in: US stock indexes rise supported by strong corporate results. Bobby Mulavy, a macro trader at Goldman Sachs, said earlier this week that the historical relationships between bonds, stocks and gold have been “completely overturned,” adding that this market is “in many ways still extraordinary in the modern market.”