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Cash funds saw $70.6 billion of inflows, BofA said, citing EPFR
data, on Friday.
Inflows to cash so far this year have reached $837 billion,
almost as much as record $917 billion in the whole of 2020.
Bond funds saw $13.4 billion of inflows, while equity funds saw
their second week of inflows ($7.7 billion), the strongest two
weeks since January as investors were "dragged back into
stocks", BofA said.
"Q1 recession fears melt into Q2 Goldilocks greed," BofA
analysts said in the note.
"We remain bearish," BofA said, adding that the "pain trade"
over the next 12 months is the Fed raising rates to 6%, not
lowering to 3%.
The S&P 500 closed 20% above its October 2022 low on Thursday,
while the tech-heavy Nasdaq 100 is up over 32% year-to-date.
Tech funds, however, had their first weekly outflow ($1.2
billion) in eight weeks, after a record $8.5 billion inflow the
week before, due to a surge of investor interest in stocks with
exposure to artificial intelligence.
BofA's bull and bear indicator, a measure of investor sentiment,
rose to 3.6 from 3.5 on improving credit technicals and steady
emerging market stock inflows.
A separate set of data showed global equity funds posted
outflows for the eighth consecutive week in the week to June 7,
while global bonds funds saw inflows for the 12th straight week.
Data from Refinitiv Lipper showed investors withdrew a net
$18.84 billion from global equity funds, the largest weekly net
selling since March 15.
(Reporting by Samuel Indyk; Editing by Amanda Cooper and Toby
Chopra)
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