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“Zero capitulation in equity positioning” despite selloff -BofA -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: Wall Street street sign is visible outside New York Stock Exchange (NYSE), New York City, New York. It was taken on January 3, 2019, by Shannon Stapleton. REUTERS/Shannon Stapleton/File Photo

LONDON (Reuters – Investors remain unperturbed by Wall Street’s selloff, and they continue to purchase stocks. BofA’s weekly flow show report showed that $17.1 million was poured each week into equities.

The research note stated that “note zero capitulation of equity positioning” and added that $84 billion had poured into the markets year to date, while only two out 18 trading days in this month saw investors withdraw cash.

New York lost 9.2% in 2022 due to the U.S. Federal Reserve’s move to increase monetary policy against inflation.

The “Fed can’t cut inflation on Main St without deflation on Wall St”, BofA analysts argued, saying they remained bearish in regards to the direction of travel for stocks.

The report highlighted notable financial market flows, including the outflow of bonds in the week ending Wednesday, and inflows into emerging market equities in the week ending Wednesday.

BofA’s “private clients”, which have assets of $3.2 trillion and had 11.7% of cash, were net buyers for stocks for eight weeks.

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