Bank of America’s Data Shows Hedge Funds Continue to Sell Equities -Breaking
Bank of America (NYSE:) equity & quant strategist Jill Carey Hall said today that the firms flows show the continuation of the most recent trends in the stock market.
Clients were net sellers in the US of equities. The hedge funds led this trend and continued selling equities for a fourth consecutive week. However, retail and institutional clients were able to resume buying equities again.
Carey Hall wrote in a client letter that retail client flows had been positive and not contradictory indicators of near-term returns. It was actually slightly more than the signals from hedge funds flows.
Clients had been selling stock in seven out of 11 industries with Financials, Consumer Discretionary, and Financials being the hardest hit. This was in addition to the sale of the Financials largest share since Aug. 2020.
“We have been cautious on labor-intensive Consumer Discretionary stocks as wages have continued to rise – and the sector currently ranks worst in our tactical S&P 500 sector ranks and has been deteriorating in rank in our small cap sector ranks.”
The largest inflows came from Industrials and Materials. Clients also purchased Real Estate and Staples stocks.
When it comes to buybacks, last week’s activity was the lowest in the past 11 months “suggesting a tepid read on broader S&P 500 buybacks in 1Q.”
By Senad Karaahmetovic
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