Investors poured $21b into equities and $10.9b into bonds in the week through April 26, BofAML strategists Michael Hartnett and Jared Woodard write in note.
- Europe equity funds see $2.4b of inflows, the most since December 2015 after “market-friendly” French election
- U.S. equity funds get $13.8b, most in 19 weeks, amid tax-reform optimism
- EM stocks see 6th straight weekly inflows, Japan sees inflows in 14 of past 16 weeks
- Global stock market cap up $3.3 trillion YTD; bull market unlikely to end until bullish macro data prompt central banks to tighten
- Returns for stocks and bonds impressive given Trump disappointment, EU politics; best explanation is supportive central-bank liquidity
- Sector-wise, investors poured money into financials, tech, energy and U.S. smallcaps; redemptions in defensives including REITs, consumer, utilities and telcos