BofA strategists led by Michael Hartnett say equity exposures have surged, with
global equity funds registering an annualized $1.4tn of inflows this year —
$656bn into U.S. equities, $222bn into tech and $78bn into Korean stocks. The
The team says these flows materially support equities but notes few investors are
putting real money into shorts or underweights; risk assets have struggled over
the past six months as bullish positioning collided with policy tightening. They
retain a defensive stance until rate hikes end and financial conditions ease,
flagging three potential triggers for a shift: U.S. crude below $70/bbl, USD
reversing recent gains and the 10-year U.S. Treasury yield dropping below 4.5%.
