Investors are pouring money back into global stocks following biggest outflow of the year

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Bank of America's Michael Hartnett said investors have started piling money back into stocks following the biggest outflow this year.

Bank of America’s Michael Hartnett said investors have started piling money back into stocks following the biggest outflow this year. But they pulled money from bonds at the same time, resulting in the largest weekly outflow since March.

In addition to his roundup of fund flows, the longtime BofA equity strategist shared some interesting charts supporting his case for remaining bearish on stocks, and why his clients should “stay bearish/defensive and sell the last hike.” Hartnett also included a warning about the Bank of Japan, which could send a shock wave through global markets if and when it abandons its policy of keeping a tight grip on Japanese government bond yields. That is looking increasingly likely as consumer-price inflation in the country surges to its highest level in decades.

 

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