All asset classes experienced outflows in a week to Wednesday, including the largest withdrawal from stocks since December 2022, according to data from BofA citing EPFR Global data.
The breakdown of outflows includes $21.3 billion from equity funds, $2.1 billion from bonds, $26.1 billion from cash, and $300 million from gold.
"78% equity indices now trading above 50dma & 200dma…big reversal from Oct 31st when 76% trading below 50/200dma," analysts said.
As far as year-to-date flows are concerned, there was a record $1.3 trillion inflow into cash, US Treasuries attracted a record $177 billion, investment-grade bonds saw $162 billion in inflows, global stocks received $152 billion, US large caps garnered $125 billion, and the tech sector drew $44 billion.
Conversely, there were record redemptions of $33 billion from TIPS (Treasury Inflation-Protected Securities), $37 billion from EM (Emerging Market) debt, and a record $73 billion redemptions from US value funds.
Specific highlights include the third consecutive week of Treasury outflows at $9.2 billion, marking the longest streak since February 2021. Moreover, the tech sector experienced its largest outflow in 15 weeks at $0.7 billion.
In the regional breakdown of equities, the United States saw outflows resume at $10.5 billion, while emerging markets recorded a third consecutive week of inflows at $500 million.
Japan witnessed outflows resume at $900 million, and Europe sustained its 41st week of outflows, amounting to $800 million.