By Senad Karaahmetovic
Bank of America clients continue to buy U.S. equities despite the ongoing banking sector crisis. Last week, during which the S&P 500 added 1.4%, was the fourth consecutive week of inflows and the biggest since October (+$3.7 billion).
All three client groups - hedge funds, retail, and institutional clients - were buying with large-cap stocks as the biggest beneficiaries.
"Clients bought stocks in seven sectors, led by Tech and Health Care (biggest Health Care inflows since Dec. ‘21). Tech has seen buying every week but one YTD. Energy stocks saw the biggest outflows after the prior week’s record inflows. Clients bought Financials for the fourth straight week; both institutional and retail clients were buyers," BofA strategists wrote in a client note.
Materials attracted inflows again and now have the longest buying streak (nine weeks).
On the other hand, buybacks were light with the strategists noting that buybacks tend to slow over the next three weeks into earnings.