Equity funds lose $30 billion as investors flee U.S. and EM stocks: BAMLby Helen Reid
LONDON (Reuters) - Equity funds suffered their second-largest weekly outflows ever this week, with
$29.7 billion pulled out of risky assets, Bank of America Merrill Lynch (BAML) strategists said on Friday as fears about rising U.S. protectionism continue to weigh.
U.S. equity funds lost $24.2 billion in their third-largest ever weekly outflows, EPFR data cited by BAML showed, as markets sealed a first half marked by higher volatility, rising U.S. interest rates and increasing global protectionism.
Some
$18 billion coursed out of EM equity and debt funds in June after an $8 billion outflow in May.
European stocks suffered their 16th straight week of
outflows with $3.9 billion pulled out of the region’s funds, while Japan saw $2.6 billion of inflows.
Among equity sectors, technology has been the most resilient to trade worries, although threats to curb Chinese investment in U.S. tech this week hit the stocks.
Tech continued to draw the strongest inflows, however, with $0.8 billion, and was on a year-to-date total of $19 billion inflows while $9 billion has left all other sector funds.
CONTRARIAN BUYING AHEAD?
In fixed income,
investment-grade bond funds saw strong inflows of $2.9 billion as investors fled to safety, while
high-yield bond funds saw outflows for an eighth consecutive week, with $2 billion removed.
High-yield bond funds were on track for a record
$90 billion of outflows this year, a consequence of the changing global interest rate environment thrusting core yields higher.
BAML’s private client allocations showed U.S. government bond holdings surged to a 10-year high, but positioning on risky assets remained positive with
cash allocations at a record low of 9.9 percent and equities at 61.1 percent.Financials stocks suffered $1.1 billion of outflows this week.
Source: Reuters
https://www.reuters.com/article/us-mark ... US%20Money
It's all about "how much you made when you were right" & "how little you lost when you were wrong"