Strategy recommendation from BoFA includes investing in US boom, international stocks, gold, commodities, crypto, China.

From Investing.com: 2024-11-29 03:50:22

Markets saw significant capital flows last week, with stocks attracting $29.4B, bonds $10.3B, cryptocurrencies $1.1B, and gold $0.3B. $2.9B was withdrawn from cash holdings. Cryptocurrencies had a record $13.5B inflow over eight weeks. Bank loan funds also saw increased interest, with a $1.5B inflow last week.

US equities attracted $36.1B, the largest four-week inflow ever. The financial sector saw a $8.0B inflow, the largest since January 2022. The Bank of America Bull & Bear Indicator dropped to 4.7, an 11-month low, reflecting outflows from stocks and debt, poor market breadth, and increased cash levels.

Bank of America’s private clients have $3.9 trillion AUM, with 63.3% in stocks (30-month high) and 19.0% in bonds (27-month low). They are on track for the largest equity outflow since Q2 2023 but increasing bond holdings, particularly in Treasury notes.

BofA’s Hartnett recommends a strategy of US boom in Q1, international stocks in Q2, gold and commodities in 2025 for inflation surprises, and long positions in cryptocurrencies and China as hedges against potential bubbles.



Read more at Investing.com: How to play the stock market bubble risk? Buy crypto and China, BofA says By Investing.com