Investing
Equity, bond funds see inflows as markets hit rough patch – BOFA
Published by maria gbaf
Posted on October 18, 2021
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by maria gbaf
Posted on October 18, 2021
2 min readLast updated: January 29, 2026
Equity and bond funds saw inflows despite market volatility. BofA highlights concerns over inflation and China's slowdown affecting investments.
LONDON (Reuters) – Investment flows into equities slowed while emerging market debt and equity funds saw the biggest redemption in ten weeks as concerns about surging inflation pressures and a China slowdown prompted investors to dump popular trades, BofA said on Friday.
Investors ploughed $11.8 billion into stocks and $77 million into bonds, in the week to Wednesday, according to BofA’s weekly flows note based on EPFR data.
Corporate credit across all classes saw money leave with high yield and emerging market debt seeing the biggest outflows at $1.8 billion and $2.5 billion each.
“The bear case is pandemic ending and so is $30 trillion of emergency policy stimulus and more bearish Wall St positioning reflects concerns regarding inflation and China,” analysts led by Michael Hartnett, chief investment strategist at the bank, said in a note recommending clients to “sell it”.
BofA analysts believe that policymakers and politicians are now worried inflation will damage growth and approval ratings, resulting in a broad-based policy pivot from pro-growth to anti-inflation policies.
The BofA Bull & Bear indicator meanwhile fell to 5.1 from 5.5, in the middle of the range as credit flows stall and the broader equity technical picture worsens.
(Reporting by Saikat Chatterjee; Editing by Karin Strohecker)
The article discusses equity and bond fund inflows amid market volatility, with a focus on inflation and China's economic slowdown.
Surging inflation pressures and a slowdown in China's economy are causing investors to reconsider popular trades.
BofA analysts recommended clients to 'sell it' due to concerns over inflation and market positioning.
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