Bank of America data shows investors are fleeing the US market in response to tariffs-induced volatility.
CNBC reported that the financial giant noted in a recent analysis that US equity markets saw an outflow of $8.9 Billion in the week prior to April 30th.
In the week before April 30, European stocks experienced a flow of $3.4 billion, while Japanese stocks received $4.4 billion.
BofA notes, too, that every $100 inflow of US stocks since November’s presidential election was accompanied by $5 in outflows in the last three weeks.
According to BofA, the crypto sector saw $2.3 billion worth of inflows in the last week. High-yield bond inflows were $3.9 billion. This indicates that investors are willing to take on risk. Gold and Treasuries saw combined outflows of $6 billion.
Banks have noticed that their clients now worry more about inflation than deflation and are adjusting portfolios to reflect this. They’ve bought shares in utilities, and exchange-traded fund (ETF) with low volatility and high dividends.
The team of Bank of America market strategists said last month that the recovery of the US stock markets could be brief. They advised clients to sell into the rallies of US stocks and dollars.
Bank strategists say that devaluation of the US Dollar is “the cleanest investment theme.”
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Sources of Images include Pixabay Creative Commons & Midjourney
The report may change as new information becomes available.
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