Bloomberg: Investors fled most major asset classes last week, with US equities and treasuries a rare exception to the huge exodus, amid concerns that tightening monetary policy will push leading economies into recession.
According to Bank of America Corporation notes, citing EPFR global data, global equity funds had সপ্তাহ 5.2 billion in outflows for the week to May 18, which led to a redemption from mutual funds, although US stock funds were able to attract a small $ 0.3 billion inflow. The outflow of bond funds reached $ 12.3 billion, with only treasury and government debt added. Investors have also given up cash and gold.
Stocks lost nearly 12 12 trillion in market value from a peak in March as investors dumped risky assets between the central bank and a floor of concern over rising inflation. In a survey by BofA’s monthly fund manager released earlier this week, fears of a recession downplayed Ukraine’s inflation and war risk, with investors turning the lowest weighted equities in two years.
Although David J. of Goldman Sachs Group Inc. Strategists, ranging from Kostin to JPMorgan Chase & Co.’s Marco Kolanovich, fear the impending recession.
While BofA’s Custom Bull & Bear index is heading for an “unequivocal” reversal buy signal for the stock, strategists led by Michael Hartnett have reiterated their recommendation to sell any bear rally. The S&P 500 tried to recover this week after flirting with bear market territory, but the bounce proved short-lived and set the benchmark for its longest weekly losing streak since 2001.
Hartnett said that over the past 140 years, in 19 U.S. equity beer markets, the S&P 500 has seen an average fall of 37.3%, with an average duration of 289 days. If repeated, BofA said the latest bear market would end in October, with the S&P 500 at 3,000 points – about 23% below current levels, and the Nasdaq at 10,000 points – 16% lower than here.
“3,600 is the new bull case,” Hartnet wrote in a note, referring to the S&P 500 level, which means 7.7% downside from here.
In equity funds last week, U.S. stocks saw an inflow of $ 0.3 billion, then added $ 0.2 billion to Japanese stocks, while European stocks increased their outflows for the 14th week. Investors pile up on US large-caps and growth stocks, while prices and small-caps exit. Within the sector, utilities and real estate led the flow, while finance, materials and energy saw outflows.