How to play the stock market bubble risk? Buy crypto and China, BofA says

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How to play the stock market bubble risk? Buy crypto and China, BofA says

Markets witnessed significant capital flows into various asset classes over the past week, according to the data compiled by Bank of America.

Bank loan funds also saw continued interest, with inflows over the past eight weeks, including $1.5 billion last week alone, marking the largest four-week inflow since February 2022. The Bank of America Bull & Bear Indicator has decreased from 5.4 to 4.7, hitting an 11-month low. This drop, the largest weekly decrease since March 2023, reflects outflows from stocks and debt, poor stock market breadth, and increased cash levels.

These clients are on track for the largest three-month equity outflow since the second quarter of 2023, while concurrently increasing their bond holdings through Treasury notes, marking the 10th largest inflow in the past 12 years.

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