By Investing.com Staff
Investors have capitulated in bonds, not stocks this year, BofA Securities' latest "flow show" data notes.
BofA Chief Investment Strategist, Michael Hartnett, highlights that YTD investors have bought $195 billion of stocks and sold $193 billion of bonds.
Looking at flows to know for the week, Hartnett notes investment-grade bonds had outflows of $16.6 billion, the largest since April 2020. He also noted the biggest global equity outflow in 9 weeks. Meanwhile, financials saw outflows for the 13th consecutive week, while materials had their largest outflow ever. Also, they saw the biggest redemptions from energy in 5 weeks.
BofA Private Clients now have their lowest allocations to stocks since November of 2020 at 61.2% and largest in bonds since February f 2021 at 18.9%. Portfolio cash positions of 12.6% is the largest since October of 2020 and now exceeds the 12.4% historical average.
The firm's BofA Bull & Bear Indicator remains at “maximum bearish” level of 0. Also, a contrarian “buy signal” was triggered Tuesday with over 88% of equity indices trading below their 200 DMA and 50 DMA.