Investors sold $14.5 billion of equities in the week to Wednesday with U.S. equity funds posting their biggest outflow in 11 weeks, BofA said on Friday, citing data from EPFR.
US equity funds posted an outflow of $11.5 billion, European equity funds have seen outflows for 30 straight weeks and tech stocks posted their biggest weekly outflows since January 2019, shedding $1.8 billion, it said. BofA.
BofA added that global equities have seen outflows over the past six months and that the massive influx into global equities seen from November 2020 to February 2022 has ended.
BofA analysts said their “Bull & Bear” indicator, which tries to follow market trends, is back at “lower highs” after last week notching its first small rise since April.
BofA cited deteriorating flows in high-yield and emerging market debt and “weak credit technicals” as reasons for the move.
Growing fears of a recession, rising inflation and an unfolding energy crisis in Europe have hurt global stocks. The S&P 500 has lost about 16% so far this year.