SoFi CEO enters prepaid forward contract on 1.5 million shares
Bank of America's strategists noted in their weekly “Flow Show” that cash funds experienced their most substantial outflows since October, with a notable $61 billion leaving the asset class for the week ended Wednesday.
Similarly, stock funds also saw strong withdrawals, with $21 billion redeemed in the same period.
In contrast, gold funds attracted the largest inflow since May 2023, amounting to $1.1 billion, according to EPFR Global data.
The report also highlighted that US stocks faced their most significant outflows since December 2022, totaling $22 billion. Within this, US small-cap stocks saw redemptions of $5.9 billion, and communications stock funds recorded a record outflow of $1.7 billion. However, energy sector funds bucked the trend, receiving their largest inflow since October at $500 million.
The tech sector sits at an “all-time relative high” against the broader market, adding there will be “no new bull market” because there is no recession. In addition, there are “no kick-start cheap valuations” unlike previous periods of market rebounds, such as the 1920s, 1950s, 1980s, and 2010s, where stocks were more attractively priced
The fixed-income market showed mixed performance.
Investment-grade (IG) bond funds continued to attract investors for the 21st consecutive week, bringing in $5.5 billion, while high-yield (HY) bonds experienced their most significant outflow since October, with $700 million leaving the asset class.