From Financial Modeling Prep: 2025-03-05 02:25:40

Bank of America’s private clients kick off 2025 with a historic buying streak, marking the longest trend since 2008. They added $2.5 billion to U.S. equities last week, with strong demand for single stocks. Institutional clients and hedge funds turned bearish, while corporate buybacks surged to the highest levels since 2014.

In terms of sector breakdown, technology and health care saw significant inflows, while utilities and communication services experienced outflows. Health care stocks outperformed the S&P 500 by approximately 9% year-to-date, driven by institutional investors and hedge funds.

ETF flows show mixed sentiment, with negative flows for growth, blend, mid-cap, and broad-market ETFs. However, there was increased exposure to value, large-cap, and small-cap ETFs. Tech and communication services ETFs saw the biggest inflows, while financials ETFs faced selling pressure.

Looking ahead, BofA’s private clients remain bullish, but institutional investors and hedge funds are pulling back. With record corporate buybacks and sector rotations in play, investors should monitor tech and health care strength, institutional selling trends, and ETF flows for potential shifts in sentiment. Retail demand continues to drive equities higher, but institutional selling may pose short-term challenges.



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