BofA Says Equity Rally Faces Inflation Reckoning
- Bonds see weekly inflows; cash funds have redemptions: BofA
- Hartnett says investors should sell the S&P 500 above 4,200
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Next week’s US inflation data will mark a turning point for the equity rally at a time when investors are swapping stocks for bonds amid the specter of a recession, according to Bank of America Corp. strategists.
Global equity funds had outflows of $7.4 billion in the week through Feb. 8, according to a note from the bank that cited EPFR Global data. Cash funds also saw redemptions at $10.1 billion, while $7.4 billion entered bonds.