Bank of America: U.S. stocks attract $39 billion in a single week, but strategist team still 'leans towards risk aversion'.

BlockBeats news, October 16 — The latest Bank of America report shows that U.S. equity funds saw another $39 billion inflow in a single week, and at the current pace, annualized inflows this year could reach $636 billion, a record high; U.S. Treasuries recorded inflows for the 16th consecutive week, the longest streak since August 2024. But the BofA strategist team led by Michael Hartnett remains "inclined to risk aversion," citing rising real yields, price action in AI and bank stocks, and potential volatility from the midterm elections.

EPFR data show that in the week ended October 14, global equity funds took in about $64.5 billion. U.S. large-cap stocks saw $32.5 billion in inflows, while growth, value, and small-cap stocks drew $1.6 billion, $1.2 billion, and $1.1 billion, respectively; tech stocks led with $10.7 billion, while financials and consumer stocks saw outflows of $1.4 billion and $600 million, respectively. Emerging markets took in $17.7 billion, Japan $400 million, and Europe saw $1.5 billion in outflows.

Safe-haven assets were also in demand: U.S. Treasuries took in $3.6 billion, investment-grade bonds $3.5 billion, municipal bonds $4.5 billion, and emerging-market bonds $800 million; high-yield bonds saw a third straight week of outflows at $900 million. Cash funds saw $53.1 billion in outflows, gold took in only $100 million, cryptocurrencies saw about $600 million in outflows, and bond funds overall took in $11.8 billion. The fund flows stand in contrast to the cautious stance of BofA strategists.