Bank of America’s Chief Investment Strategist Michael Hartnett has reflected on flows in a week to Wednesday, which saw $12.9 billion in equity outflows while outflows from bonds are $13.1 billion.
Outflows from equities are the largest since December 2021 with outflows from US equities at $15.5 billion. On the other hand, tech inflows were $1.9 billion while the market saw the biggest utility inflow of $0.6 billion in 3 months. Overall, we saw the biggest week of equity outflow since November 2021.
The last week also saw the 7th consecutive week of bond buying, Hartnett noted.
“Recession…so hot right now! everyone fears it…sentiment of investors (see BofA April FMS & all-time low global growth expectations), corporations (NFIB US small business confidence), consumers (Michican)…v recessionary,” Hartnett commented in a note.
BofA’s Bull & Bear Indicator is at 2.0, on the cusp of signaling Buy.
By Senad Karaahmetovic