Latest｜This Week's Bank of America Global Fund Flow Report

Capital flows and market sentiment

This week, global fund flows displayed a risk-on pattern: equities saw inflows of $56.2 billion; bonds $15.4 billion; cash $3.4 billion; crypto outflows $500 million; gold $1.7 billion outflow (first outflow since July 2026). By region, China inflows were $25.7 billion (the largest since April 2025, driven by 'national team' buying); Japan saw $6.8 billion inflow (the biggest since May 2013); Europe registered outflows of $2.3 billion.

By industry: inflows were led by technology at $5.3 billion, financials $800 million, healthcare $700 million; outflows occurred in communication services $0, energy $0, consumer goods $300 million, REITs $300 million, utilities $500 million, and materials $1.2 billion.

Bank of America's private clients with $4.6 trillion AUM allocate 66.0% to equities, 17.5% to bonds, and 9.4% to cash. Over the past four weeks, they've increased holdings in muni bonds, industrial and healthcare ETFs, and cut positions in consumer staples, EM bonds, and consumer discretionary. By sector, tech saw net inflows for a fifth consecutive week at $5.3 billion

Bull & Bear Index Interpretation This Week

Bank of America's Bull & Bear Index dropped from 7.2 to 7.1, remaining "neutral." The decline stems from weakening global equity breadth and wider spreads in high yield and subordinated bank bonds, partly offset by strong equity inflows.

Asset Allocation Recommendation: Tech Bonds

AI hyperscalers’ bond issuance is set to surge in 2026 to $182 billion (just $17 billion in 2024), with Mag7 bond yields at an attractive 6-8%;