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Brace for ‘Recession Shock’ as Outflows Rock Equities, Bank of America Says

  • Global stocks see fourth-biggest weekly outflows of 2022
  • Outlook for US stocks turning less bleak, BofA indicators say
Bank Of America Locations Ahead Of Earnings Figures
Photographer: David Paul Morris/Bloomberg
Updated on

Investors bracing for a recession jolt accelerated their retreat from stocks after the Federal Reserve warned it won’t be easily deterred in its fight against inflation, Bank of America Corp. strategists say.

Global equity funds had outflows of $9.4 billion in the week to Aug. 31, the fourth-largest redemptions this year, according to EPFR Global data cited by the bank. US equities had the biggest exodus in 10 weeks, while $4.2 billion left global bond funds, the data show.