Last Week Marked Largest Outflows From Equities Since March 2020 and Biggest US Stocks Selling Since Early 2018 - BofA

September 24, 2021 7:51 AM EDT
Get Alerts SPY Hot Sheet
Price: $450.64 +0.77%

Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 19 | New: 48
Trade Now! 
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

After the S&P 500 printed an all-time high of $4545.85 in the first week of September, the subsequent pullback yielded a 5% correction to low $4300s.

According to BofA’s Flow Show, the last week’s selling marked the 1st outflow for global equities in 2021 ($24.2 billion) and the largest since March 2020. As much as $39.6 billion went into cash (the largest in 4 months), and $10 billion into bonds.

Particularly, the US stocks experienced the largest outflow since February 2018, while Europe saw the largest outflow YTD ($1.8 billion). As far as tech funds are concerned, the last week also marked the 1st outflow in three months ($1.2 billion).

“Global tapering has begun (ECB, BoE, BoC, RBA, Fed) central liquidity add was $8.5tn in 2020, $2.1tn in 2021, just $0.1 in 2022 (since COVID outbreak central banks have bought $800mn of assets every hour...shrinks to <$100mn in H1’22); when Fed’s balance sheet peaks, multiples peak, tech leadership peaks; unintended consequences of QE are Inequality & Inflation, puts political pressure on central banks to reduce stimulus (53 rate hikes thus far in ’21, highest in 10 years),” BofA Chief Investment Strategist Michael Hartnett wrote in a note.

The stocks portfolio allocation remains very high at 64.8% among BofA’s clients, compared to the very low allocation of 17.8% into bonds.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Hot Comments, Trader Talk

Related Entities

Standard & Poor's