LONDON, March 3 Reuters Investors poured more money into cash funds in the week to Wednesday than at any time since the depths of the pandemic in 2020, a report from BofA Global Research showed on Friday.

Cash funds saw inflows of 68.1 billion, BofA said citing EPFR data. As per previous flow reports from the bank, this is the largest influx into cash since a 126.4 billion inflow in the week of April 24 2020.

Global shares hit twomonth lows while bond yields surged in the latest week, as investors assessed a raft of data that has reinforced the belief that interest rates aren39;t going to peak any time soon and no cuts will materialise this year.

Investors ditched equities and gold, which tends to suffer in an environment of rising real interest rates.

Describing inflation as a secular reality rather than a cyclical theme, the BofA analysts hailed the end of an era of extraordinary monetary policy.

In light of higher inflation and higher interest rates, they note cash will be as good as bonds stocks until the bear market comes to an end with an expected credit event.

Such a credit event could originate from the AngloSaxon real estate sector which has been hit by higher rates, the BofA analysts wrote.

The bank pointed to U.S. mortgage applications being at their lowest since April 1995, while house prices in the United States, the UK, Canada, Australia and New Zealand were either falling or stagnating.

They advise longterm investors to buy assets considered…