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 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 u

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 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%.