BofA Says Investor Rush to Cash Is Fastest Since Covid Hit
- Equities and IG spreads to drop over next 3-6 months
- Cash inflows hit largest since March 2020 at $143 billion
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Investors are fleeing to cash in the biggest rush since the onset of the pandemic as concerns of an economic slowdown mount, according to Bank of America Corp. strategists who see equity and credit markets slumping in coming months.
“Credit and stock markets too greedy for rate cuts, not fearful enough of recession,” a team led by Michael Hartnett wrote in a note dated Thursday. The strategist, who was correctly bearish through last year, said investment-grade spreads and stocks will be taking a hit over the next three to six months.