BofA Flow Show:

The latest flow data highlights significant shifts in investor sentiment, with record cash outflows indicating a strong 'risk-on' appetite despite tax-related withdrawals.

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BofA Flow Show:

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  • Record cash outflow linked to 'risk-on' sentiment, but also tax-related.
  • EM stocks see USD 10.5bln outflow, largest in 11 weeks; Korea posts record outflow of USD 2.5bln.
  • European stocks see USD 4.7bln outflow, largest since November 2024.
  • Investors pull record USD 172.2bln from cash in latest week.
  • Stocks post USD 11.3bln inflow, driven by USD 17.4bln inflow to US equities.
Context

Notably, emerging markets and European equities experienced substantial outflows, while US equities attracted notable inflows. This suggests a potential reallocation towards risk assets that could have implications for future market volatility and equity valuations.

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