BofA weekly flow data shows USD 13.2bln into stocks, USD 3.4bln into bonds, USD 0.8bln into cash, USD 0.2bln out of crypto and USD 0.9bln out of gold

• BULL & BEAR: BofA’s Bull & Bear Indicator fell to 8.7 from 9.2, driven by equity outflows from tech and healthcare, sizeable outflows from HY and EM debt, and weaker global stock index breadth. 
• EQUITIES: US equities returned to inflows at USD 1.4bln, Europe saw its first outflow in six weeks. Korea equities saw a record USD 8.9bln inflow, while Japan equities drew USD 6.3bln, the biggest since May 2013. EM equities posted a sixth straight week of inflows.
• SECTORS: Financials saw a record USD 3.7bln outflow, healthcare lost USD 1.6bln, the biggest outflow since July 2025, and tech saw a USD 0.9bln outflow, its first in seven weeks. Energy led sector inflows at USD 1.4bln, followed by utilities and materials.
• FIXED INCOME: Bank loans saw a USD 2.4bln outflow, the biggest since April 2025; HY bonds lost USD 5.0bln, the biggest since April 2025; EM debt saw a USD 3.1bln outflow, the biggest in two months.
• POSITIONING/ALLOCATIONS: BofA says risk-off outflows are becoming more visible in US HY bonds, EM debt and especially financial stocks, but argues positioning still does not show the “bear panic” usually associated with a durable low. BofA private clients cut equity allocation to 64%, the lowest since June 2025, while bonds rose to 18.1%, the highest since August 2025; cash stood at 10.6%. Over the past four weeks clients bought Japan, EM debt and municipals, while selling bank loans, MLPs and staples.
• TRADING VIEW: BofA says it would fade oil above USD 100/bbl, DXY above 100, 30yr Treasury yields above 5%, and the S&P 500 below 6,600, arguing those levels should provoke a policy response.

BofA's weekly flow data indicates a notable shift in investor sentiment, with significant inflows to equities, particularly in Korea and Japan, while the outflows from tech and healthcare sectors signal caution. The overall reduction in the Bull & Bear Indicator, alongside outflows from high-yield and emerging market bonds, suggests a risk-off sentiment becoming more pronounced, which may frame market expectations for future monetary policy adjustments.