Investors Are Dumping Equities and Cash Amid Fears of Hawkish Fed, BofA Says
- Stock, cash funds see weekly outflows; $4.9 billion to bonds
- Hartnett sees S&P 500 dropping 5% by March 8 as yields rise
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Investors are dumping equities and cash alike in favor of bonds as they position for the risk that the Federal Reserve persists with hawkish policy moves, Bank of America Corp. strategists said.
Global equity funds lost $7 billion in outflows in the week through Feb. 22, while $3.8 billion left cash funds, according to a note from the bank, which cited EPFR Global data. At $4.9 billion, bonds drew additions for an eighth straight week in the longest such streak since November 2021, the team led by Michael Hartnett said.