2025 has seen record start-of-year buying streak from BofA’s private clients

Published 04/03/2025, 11:50
© Reuters.

Investing.com -- Bank of America’s private clients have kicked off 2025 with a record buying streak, marking the longest start-of-year trend in the firm’s data since 2008.

Last week, clients remained net buyers of U.S. equities, adding $2.5 billion for the fifth consecutive week. Single stocks continued to see strong demand for the eighth straight week, while ETFs were net sold.

Private clients extended their buying streak to 12 consecutive weeks, a historic run for this time of year.

"Our latest annual GWIM Survey suggested rising private client equity allocations and bullishness by advisors on the market/economy," BofA strategist Jill Carey Hall said in a Tuesday note.

Institutional clients, after buying the previous week, turned into the biggest sellers, while hedge funds sold U.S. equities for the third consecutive week.

Corporate client buybacks, however, accelerated on a weekly basis and have remained well above seasonal norms. Year-to-date buyback execution as a percentage of market cap is tracking at the highest level for any year since 2014.

Clients were net buyers in five of the 11 GICS sectors, led by technology, health care, and financials. Tech inflows were the strongest since December, extending a five-week buying streak.

Health care saw record weekly inflows, the highest in BofA’s data since 2008, with institutional clients driving the trend and hedge funds also participating. “Health Care inflows as a % of market cap were the largest since Jan. and before that, largest since 2009,” the note revealed.

Year-to-date, health care has been the best-performing sector, outperforming the S&P 500 by approximately 9%.

Meanwhile, communication services and utilities saw the biggest outflows, with utilities experiencing its fourth straight week of selling.

ETF flows were negative for the second consecutive week as clients sold growth, blend, mid cap, and broad market ETFs, while increasing exposure to value, large cap, and small cap ETFs.

Sector ETF flows were mixed, with outflows in five of the 11 sectors. Financials ETFs faced the largest selling pressure despite strong demand for single stocks, while tech and communication services ETFs recorded the biggest inflows.

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