BofA clients pull out of US stocks as S&P 500 hovers near all-time high

BofA clients pull out of US stocks as S&P 500 hovers near all-time high
The risk-off rush sparked an offloading out of seven out of 11 sectors, including tech and energy stocks.
AUG 27, 2024

Bank of America Corp. clients pulled money from US stocks for the first time in three weeks, paring their exposure in the asset class that continued to hover near a record. 

Outflows were on display among all major clients groups — excluding corporates — with $4.6 billion exiting US stocks last week, the bank’s quantitative strategists including Jill Carey Hall wrote in a note to clients on Tuesday. The 500-member index finished the week at 5,634.61, or 0.9% away from an all-time high

The withdrawal from US equities comes amid uncertainty about how much longer the risk-on momentum that pushed the S&P 500 up 18% this year can continue. It’s also a departure from the buying clients had previously done over the past two weeks. The week before, Bank of America clients shelled out $2.7 billion for US equities as the S&P 500 Index notched its best week of the year. 

The offloading was seen across seven of the 11 industry groups but was most prominent in technology stocks, which saw their first outflow in three weeks. Clients pulled money from energy stocks for the fifth week in a row, while consumer discretionary posted its first outflow in six weeks. Communication services was a winner yet again, extending its 21-week buying streak. 

The outflow from single stocks came as clients purchased ETFs of all sizes, styles and sectors — except mid-caps — for a third consecutive week. Unlike single stocks, tech ETFs saw the largest inflows while energy ETFs saw the largest outflows. 

Meanwhile, BofA corporate client buybacks slowed last week, dropping below seasonal levels for the first time in 24 weeks, the strategists wrote. Still, on a year-to-date basis, buybacks are on pace for a record year, according to the firm’s data history.

Latest News

Texas man says SEC and fund could make him pay twice
Texas man says SEC and fund could make him pay twice

A $141M judgment and a federal asset freeze collide over one shrinking pool

Osaic executives Kristy Britt and Greg Cornick to leave
Osaic executives Kristy Britt and Greg Cornick to leave

The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.

Estate planning becomes a client retention issue for financial advisors, survey finds
Estate planning becomes a client retention issue for financial advisors, survey finds

Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.

Candidly adds AI agents for Trump Accounts, workplace benefits
Candidly adds AI agents for Trump Accounts, workplace benefits

CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.

BMO adds three advisors in Dallas amid Y'all Street wealth boom
BMO adds three advisors in Dallas amid Y'all Street wealth boom

The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.