US Stock Inflows to Hit Record $448B in 2024: BofA"
Money market funds are also experiencing unparalleled demand, expected to receive a substantial $1.1 trillion in 2024.
During the week ending November 11, equity funds saw inflows of $14.4 billion, while bonds received $9.1 billion, and cryptocurrencies gained $900 million. On the other hand, gold experienced outflows of $600 million, and money market funds saw withdrawals of $1.3 billion, as reported in BofA’s weekly "Flow Show" report, which referenced EPFR global data.
Other key movements include Treasuries, which experienced outflows of $6.4 billion in the past two weeks, marking the highest level since December 2023. Sector-wise, Financials saw inflows of $6 billion over the last four weeks, the largest since February 2022, while tech stocks had their biggest inflow in six weeks, at $5.4 billion. In contrast, healthcare stocks saw outflows of $1.1 billion, the largest since December.
Geographically, US equities saw their seventh consecutive week of inflows, totaling $16.4 billion. Emerging market equities, however, faced outflows for the sixth consecutive week, totaling $1.8 billion, while Europe continued its losing streak, with $3.6 billion in outflows for the eighth straight week.
Bank of America strategists, led by Michael Hartnett, are optimistic about the S&P 500, predicting another significant double-digit rise in 2025, driven by falling bond yields, which they see as the "secret sauce" for sustaining equity gains and avoiding sharp reversals. They believe that a "melt-up" in stocks and crypto is likely to continue in the coming months, fueled by the newly elected Trump administration’s focus on rising markets as a tool to enhance economic sentiment, with few believing Trump will allow a bear market.
Additionally, "boomy" global macroeconomic data is surfacing in the short term, as companies rush to accelerate activities ahead of potential tariffs—highlighted by record-high imports at the Port of Long Beach—and stockpile labor in anticipation of immigration controls. This has contributed to a notable decline in unemployment claims.
In the fixed income market, investment-grade bonds continued their inflow streak for the 56th week, attracting $10.2 billion, while high-yield bonds maintained a 15-week streak of inflows, drawing $1.5 billion. However, Treasury funds experienced $2.9 billion in outflows, adding to the previous week’s withdrawals.
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