For All Their Worries, Investors Are Piling Into US Stocks

For all the talk of bear markets and a possible recession, investors continue to pile into American equities.

US stocks attracted $14.8 billion in the week to June 15, their sixth consecutive week of additions, according to Bank of America Corp. strategists, who cited EPFR Global data. In total, $16.6 billion flowed into equities globally in the period, while bonds had the largest redemptions since April 2020 and just over $50 billion exited cash, the data showed.

Investor sentiment on equities has soured further this week, with the S&P 500 sinking into a bear market amid fears that aggressive interest-rate hikes would push the economy into recession. Bank of America strategist Michael Hartnett said that while markets look “painfully oversold,” rallies will likely be sold “until the rates shock can certify that an inflation shock is over.”