Source: Golden Ten Data
U.S. equity funds suffered $12.57 billion in outflows in the week ended April 13, according to Refinitiv Lipper data, the largest weekly net selling since Dec. 15.
Investors are pulling out of stocks quickly as recession fears take hold, with U.S. stocks seeing their biggest weekly outflows of the year.
U.S. equity funds saw outflows of $15.5 billion in the week to April 13, while European funds suffered outflows for the ninth week in a row, Bank of America strategists wrote, citing data from EPFR Global. Bank of America, which manages $3.2 trillion in assets, saw its private clients sell off their stocks the most since November.
Bank of America strategists led by Michael Hartnett said the outflows were due to recession fears that were dominating the market. With food and energy prices soaring, “everyone is scared,” he wrote in a report. Meanwhile, Bank of America strategists believe the rise in U.S. bond yields means a “shift” in the so-called “TINA” view—that there is no alternative to stocks.
Major U.S. stock indexes have struggled this year as the global growth outlook deteriorates, inflation remains high and central banks are increasingly inclined to raise interest rates to stem soaring prices. The crisis in Ukraine and the threat of the outbreak further weighed on sentiment.
In terms of sectors, financials led the way, while technology, materials and energy saw inflows, according to EPFR Global.
U.S. equity funds suffered $12.57 billion in outflows in the week ended April 13, the largest weekly net selling since Dec. 15, according to Refinitiv Lipper data.
Growth funds sold a net $6.91 billion for the week, the largest net sales since Jan. 26, while value funds sold a net $2.95 billion, the fifth straight week of outflows.
Among U.S. sector funds, investors sold a net $1.23 billion in financial funds, the second straight weekly sell-off. Meanwhile, consumer staples and utilities saw inflows of $609 million and $536 million, respectively.
U.S. investors also sold a net $14.01 billion in bond funds, the largest weekly outflow in two months. Other bond funds that saw net outflows included: $10.25 billion in taxable bond funds (the biggest outflow since Feb. 16), $4.39 billion in municipal funds; $4.27 billion in high-yield bond funds, and $13.3 billion in high-yield bond funds. US$100 million short- to medium-term investment grade fund in the United States.
Meanwhile, inflows to loan-participating funds amounted to $874 million, the fourth straight week of inflows.
U.S. money market funds also faced outflows of $26.4 billion, compared with $29.56 billion the previous week.
Still, strategists at asset management firm BlackRock remained upbeat on U.S. stocks, saying in a Monday note:
Soaring U.S. bond yields often spell trouble for stocks, but we believe the past is no longer an imperfect reference in a world affected by supply shocks. The Fed will not let the economy slam on the brakes, so real interest rates will remain low to support equity valuations.
Editor/Corrine
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