Investors pulled $9.4 billion from equity funds in the week to Wednesday, BofA said citing EPFR data, with U.S. equity funds suffering $6.1 billion of outflows, the largest outflow in ten weeks as investors pivot away from riskier assets.
European equity funds suffered their 29th consecutive week of outflows while investors ploughed $4.8 billion into cash.
Bond funds saw $4.2 billion of outflows, taking the total outflows for the year to $284 billion, the largest since 2002, amid an end to the trade of “peak CPI, peak yields, Fed cuts in 2023″, BofA said.
BofA analysts also said their ‘Bull & Bear’ indicator, which seeks to track market trends, rose above zero for the first time since June 14, driven by emerging market equity inflows.