“Notice zero capitulation in fairness positioning”, the analysis notice learn, including that year-to-date, $84 billion has poured into markets and solely 2 out of the 18 buying and selling days this month had seen buyers withdraw money.
The U.S. Federal Reserve’s determination to start out tightening financial coverage to battle inflation has hit international markets exhausting with New York’s S&P 500 index dropping 9.2% because the starting of 2022.
The “Fed cannot minimize inflation on Foremost St with out deflation on Wall St”, BofA analysts argued, saying they remained bearish regarding the path of journey for shares.
Amongst notable flows in monetary markets, the report confirmed that the week to Wednesday had seen the biggest outflow from bonds since March 2021 and the biggest inflows to rising markets equities because the identical date.
BofA’s ‘personal shoppers’ -which handle $3.2 trillion of property – had 11.7% in money and had been web consumers of shares for eight consecutive weeks.