BofA Reports Increased Investor Demand for Shares
2023.01.31 10:02
BofA Reports Increased Investor Demand for Shares
By Kristina Sobol
Budrigannews.com – The gained 2.5% last week, when customers of Bank of America also bought U.S. stocks after selling them the week before. The clients of BofA were net buyers ($0.1 billion) who preferred single stocks to ETFs.
“The spread this month between single stock and ETF flows was the widest ever for Jan. in our data since ’08 (chart below), despite the fact that stocks typically see more positive flows than ETFs. Our opinion: In a client note, BofA strategists wrote that “index” will be replaced by “outdex” in the year 23.
The previous week, all three client groups – retail, institutional, and hedge funds – were sellers. The first time in three weeks were hedge funds, the fourth time in a row were institutional clients, and the first time in two weeks were private clients.
Clients were purchasing stocks in six of the eleven sectors, with Communication Services, Healthcare, and Technology leading the way.
“Tech/Comm. Despite the risks we see, services have also led inflows to date: The strategists added, “still bloated labor relative to real sales growth even after layoffs, weakening fundamentals, and the fact that Tech=cyclical.”
Last but not least, they also pointed to the week’s strong buybacks and weak buyback announcements.
