“Note zero capitulation in equity positioning“, the analysis word 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 traders withdraw money.
The U.S. Federal Reserve‘s choice to start out tightening financial coverage to battle inflation has hit international markets arduous with New York’s S&P 500 index shedding 9.2% for the reason that starting of 2022.
The “Fed cannot minimize inflation on Main St with out deflation on Wall St”, BofA analysts argued, saying they remained bearish in regards to the path of journey for shares.
Among 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 for the reason that identical date.
BofA’s ‘personal purchasers’ -which handle $3.2 trillion of property – had 11.7% in money and have been web patrons of shares for eight consecutive weeks.