Bank of America’s Chief Investment Strategist Michael Hartnett has reflected on flows in a week to Wednesday, which saw $12.9 billion in equity outflows while outflows from bonds are $13.1 billion.

With outflows to US equity at $15.5billion, this is the biggest outflow since December 2021. However, $1.9B was the tech outflow and $0.6B inflows occurred in the 3 most recent months. In total, this week saw the most equity outflows since November 2021.

Hartnett pointed out that the last week saw bond buying for the seventh consecutive week.

“Recession…so hot right now! everyone fears it…sentiment of investors (see BofA April FMS & all-time low global growth expectations), corporations (NFIB US small business confidence), consumers (Michican)…v recessionary,” Hartnett commented in a note.

BofA’s Bull & Bear Indicator is at 2.0, on the cusp of signaling Buy.

By Senad Karaahmetovic