Investors are pulling money out of equities as a strong US economy and sticky inflation fuel concerns that the Federal Reserve will keep interest rates higher for longer, according to Bank of America Corp. strategists.
A team led by Michael Hartnett wrote in a note that good economic news is now bad news for stocks, a shift in mindset from the first quarter when “good news = good.” Evidence of this is the $21.1 billion investors redeemed from stock funds in the two weeks through Wednesday, the most in a fortnight since December 2022, BofA said, citing data from EPFR Global.
