Bank of America: Global equity fund annualized inflows reached a record $140 billion, with investor sentiment skewed bearish yet short-selling remains rare

BlockBeats news, November 13: Analysts at Bank of America stated that global equity funds have attracted record-breaking capital inflows this year, with few investors willing to short. In their report, led by Michael Hartnett, the team wrote that equity exposure has surged dramatically, with $1.4 trillion in annualized inflows into global funds. Of this, $65.6 billion flowed into U.S. equity funds, $22.2 billion into technology stocks, and $7.8 billion into South Korean equities. They noted: 'These capital inflows provide impressive support for stock markets, yet also indicate that despite widespread bearish sentiment among investors, very few are actually betting against or underweighting equities.' Hartnett wrote that risk assets have struggled over the past six months, 'due to a collision between bullish positions and tightening policies.' Nevertheless, these analysts maintain a 'safe-haven stance' until interest rate hikes end and financial conditions ease, which they believe will only occur when U.S. crude oil prices fall below $70 per barrel, the dollar reverses its recent rally, and the 10-year U.S. Treasury yield drops below 4.5%.