LONDON (Reuters] – Investor flows into equities slowed, while equity and emerging markets debt saw the greatest redemption in ten consecutive weeks. This was due to concerns over rising inflation pressures as well as a slowdown in China.

BofA’s weekly flow note, based upon EPFR data shows that investors invested $11.8 Billion in stocks and $77 Million into bonds over the week.

All classes of corporate credit saw outflows with emerging market and high yield debt seeing the largest outflows, at $1.8 billion to $2.5 billion.

Analysts led by Michael Hartnett (chief investment strategist of the bank), stated that “the bear case is ending” and suggested clients “sell it”.

BofA analysts feel that political leaders and policymakers now fear inflation could damage growth and ratings. As a result, there is a large-based policy pivot away from anti-inflation policy to support pro-growth.

The BofA Bull & Bear indicator meanwhile fell to 5.1 from 5.5, in the middle of the range as credit flows stall and the broader equity technical picture worsens.