# First quarter ‘dash for cash’ largest since early 2020 -BofA
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-31
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Investors moved $508 billion into cash – largest quarterly
Meta Description: Investors moved $508 billion into cash in Q1 - the largest quarterly inflow since early COVID-19 pandemic. Markets spin as banks fail.
URL: https://financedigest.com/first-quarter-dash-for-cash-largest-since-early-2020-bofahtml

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LONDON (Reuters) – Investors moved $508 billion into cash in the first three months of this year, the largest quarterly inflow since market turmoil early in the COVID-19 pandemic, according to BofA Global Research, as the failure of several banks sent markets spinning.

Flows into cash of $60.1 billion in the week to Wednesday were down from $142.9 billion the previous week, but the quarterly dash for cash was the biggest since the first quarter of 2020, BofA said on Friday, citing data from EPFR.

Markets have gyrated wildly this month following the collapse of U.S. regional lenders [Silicon Valley Bank and Signature](https://www.financedigest.com/exclusive-u-s-regulator-seeks-sale-of-silicon-valley-bank-signature-bank-portfolios-sources.html "Exclusive-U.S. regulator seeks sale of Silicon Valley Bank, Signature Bank portfolios-sources") Bank and Europe’s Credit Suisse.

[Investors dumped bank stocks](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency"), with a net $600 million outflow from financial equity funds in the week, although expectations the turmoil could lead to a slower pace of central bank rate hikes meant funds investing in tech attracted $400 million in inflows.

The S&P 500 [financial index has fallen more than 10% in March and is set for its biggest](https://www.financedigest.com/biggest-uk-house-price-fall-recorded-since-financial-crisis.html "Biggest UK house price fall recorded since financial crisis") monthly decline in nine months. In contrast, ‘big tech’ [stocks are on track for a 10% monthly gain](https://www.financedigest.com/stocks-dollar-gain-on-resilient-u-s-economy.html "Stocks, dollar gain on resilient U.S. economy").

Panic, flush, unwind, then [Fed blinked and off we rally](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data") into April,” BofA said in the report.

The report also showed large flows into [emerging market](https://www.financedigest.com/medical-nonwoven-disposables-market-scope-emerging-trends-analysis-and-forecast-2028.html "Medical Nonwoven Disposables Market Scope Emerging Trends, Analysis and Forecast 2028") equities in the first quarter. If year-to-date inflows of $37.4 billion continue at the same pace through 2023, it would be the largest annual inflow on record.

For the week to Wednesday, gold [funds attracted a net $500 million](https://www.financedigest.com/british-ev-startup-arrival-gets-300-million-funding-aims-to-slow-cash-burn.html "British EV startup Arrival gets 0 million funding, aims to slow cash-burn"), and bond funds a net $2.3 billion.

(Reporting by Alun John; Editing by Amanda Cooper, Kirsten Donovan)


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