The technology sector continues to be a dominant sector in terms of year-to-date (YTD) inflows, attracting a substantial $34 billion in investments, according to data from Bank of America.
The sector witnessed its 10th consecutive week of inflows, totaling $5.1B in the week ending on August 30. This marked the largest weekly inflow since May, according to EPFR Global’s data.
BofA's strategists noted that the BofA Bull & Bear Indicator increased to a more bullish level of 4.4, up from 4.1, marking a 5-month high.
The indicator's rise can be attributed to strong inflows into emerging market (EM) equities, improved market breadth, and the most bullish hedge fund positioning observed since May 2022.
In terms of asset class inflows, cash attracted $6.5B, bringing year-to-date inflows to $932B. Bonds recorded their 23rd consecutive week of inflows, with $1.7B. However, emerging market debt experienced its fifth consecutive week of outflows, totaling $1.7B.
The strong equity inflows were driven by emerging markets, which drew in $4.9B in investments. Overall, the global stock market received $10.3B in inflows.
In the United States, stock inflows resumed, with $4.5B flowing into U.S. stocks. In contrast, Europe continued to see outflows for the 25th consecutive week, with $300 million pulled out.
Regarding specific sectors, the technology and utilities sectors experienced inflows, while real estate, energy, and healthcare sectors saw outflows during this period.