tl;dr
Bank of America reports that investors are withdrawing from US equities, with an $8.9 billion outflow in the week before April 30th, while European and Japanese stocks saw inflows of $3.4 billion and $4.4 billion, respectively. Since the presidential election, for every $100 inflow into US stocks, $...
Bank of America data reveals a significant shift in investor sentiment as $8.9 billion flows out of US equities amid tariff-induced market volatility. Meanwhile, European and Japanese stocks attract inflows of $3.4 billion and $4.4 billion, respectively, underscoring a pivot to international markets.
Since the presidential election, for every $100 entering US stocks, $5 has exited in the past three weeks, signaling growing caution. The cryptocurrency sector and high-yield bonds enjoy robust inflows of $2.3 billion and $3.9 billion, reflecting a rising risk appetite among investors.
In contrast, traditionally safe havens such as gold and Treasuries faced a combined $6 billion in outflows. Bank of America notes that client concerns have shifted more toward deflation rather than inflation, leading to increased allocation in utilities and low-volatility, high-dividend ETFs.
Market strategists at the bank advise selling into rallies of US stocks and the dollar, highlighting US dollar debasement as a dominant investment theme. This trend indicates a cautious outlook for the US market coupled with strategic positioning towards global and alternative assets.