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BofA Says Too Early for Fed Pivot as Investors Flock to Stocks

  • Strategists see S&P 500 rally as ‘bear hug’ before 1Q low
  • Bond market changing focus from inflation to recession: BofA

Investors are pouring large sums into equities but the rally has limited room to run as the Federal Reserve remains steadfast on hiking interest rates, according to Bank of America Corp. strategists.

Global equity funds saw about $23 billion of inflows in the week through Oct. 26, the largest amount since March, according to a note from the bank citing EPFR Global data. In the US, equity funds had $21.4 billion of inflows. Cash funds saw additions of $28.4 billion, while gold saw a $500 million redemption.