Bank of America: US stocks attracted $39 billion in capital in a single week, but its strategist team remains "risk-averse".

A new Bank of America report shows U.S. stock funds recorded another $39 billion in weekly inflows, putting the annualized inflow on track to reach $636 billion this year, a record high. U.S. Treasuries have logged inflows for 16 consecutive weeks, the longest stretch since August 2024. However, Bank of America’s strategy team led by Michael Hartnett remains "risk-averse", citing rising real yields, price movements in AI and bank stocks, and potential volatility from the midterm elections. EPFR data indicates global stock funds drew around $64.5 billion in inflows in the week ended October 14. U.S. large-cap stocks saw $32.5 billion in inflows, while growth, value, and small-cap stocks posted inflows of $1.6 billion, $1.2 billion, and $1.1 billion respectively. Tech stocks led with $10.7 billion in inflows, while financial and consumer stocks saw outflows of $1.4 billion and $0.6 billion respectively. Emerging markets recorded $17.7 billion in inflows, Japan drew $0.4 billion, and Europe saw outflows of $1.5 billion. Safe-haven assets were also popular: U.S. Treasuries drew $3.6 billion in inflows, investment-grade bonds $3.5 billion, municipal bonds $4.5 billion, and emerging market bonds $0.8 billion. High-yield bonds saw outflows of $0.9 billion for the third straight week. Cash funds saw outflows of $53.1 billion, gold drew only $0.1 billion in inflows, cryptocurrencies saw outflows of around $0.6 billion, and bond funds as a whole posted $11.8 billion in inflows. The fund flows stand in contrast to the cautious stance of Bank of America’s strategists.