Wall Street's $2 Trillion Stampede: Stocks, Gold, and Cash All Win Big

This article first appeared on GuruFocus.

Global investors are pouring record amounts of money into nearly every major asset class and the pattern looks anything but traditional. According to Bank of America's (NYSE:BAC) analysis of EPFR Global data, equity funds are on pace to absorb about $693 billion in inflows this year, which would rank as the third-largest tally ever. Cash funds could see as much as $1.1 trillion, marking their second-highest total, while gold and investment-grade bonds are tracking toward record inflows of $108 billion and $415 billion, respectively.

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Behind the surge lies a market trying to navigate unpredictable US trade policies, a murky path for Federal Reserve rates, and a Washington gridlock that's even delayed key economic data. Despite that uncertainty, stocks have surged to record highs as the AI investment boom led by names like Tesla (NASDAQ:TSLA) continues to drive growth expectations. Meanwhile, lower global borrowing costs have sent bond yields sliding, and gold's safe-haven status has powered it to fresh all-time highs.

Goldman Sachs (NYSE:GS) macro trader Bobby Molavi described this as a market where historical correlations between bonds, equities, and gold have been thrown out the window. It's a fitting summary for 2025 a year where traditional portfolio theory may no longer apply, and investors are spreading capital across risk and safety alike in search of resilience amid a reshaped financial landscape.

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