According to analysis based on client flows from Bank of America, last week saw clients as net buyers of US equities ($2.2 billion), with inflows predominantly in ETFs while single stocks experienced outflows.
Clients bought small to mid-cap stocks and sold large-cap stocks. All clients were net sellers of single stocks, with private clients leading the way, marking the largest weekly outflows since May 2021. Hedge fund clients were net sellers for the third consecutive week, according to strategists at the firm.
Health Care led outflows, while Communication Services led inflows. Clients sold shares in seven of the 11 GICS sectors, with Health Care experiencing outflows for the fourth consecutive week. Communication Services led inflows, and Technology also saw inflows.
Both cyclicals and defensives experienced outflows, with defensives seeing outflows for the fifth consecutive week. Bank of America's sector views have a cyclical tilt, and they are more positive on cyclicals.
By Senad Karaahmetovic