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Hartnett remains bearish, sees new lows for stock markets
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Stocks, cash see weekly inflows; gold, bonds have outflows
Equity funds are still seeing inflows despite deeply pessimistic sentiment, with “final capitulation” not yet here, according to strategists at Bank of America Corp.
Global stock funds had inflows of $9.2 billion in the week through Oct. 19, according to a note from the bank citing EPFR Global data. Cash funds saw additions of $14.5 billion, while $12.2 billion left bonds. Gold had redemptions of $1.5 billion, the data show.
The report comes after Bank of America’s fund manager survey earlier this week showed investors had thrown in the towel on equities and global growth. But with inflation remaining persistently high and risks of a recession growing, stock markets have more room to fall, strategist Michael Hartnett wrote in the flows note, dated Oct. 20.