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Bank of America Reports $8.9 Billion Withdrawn from US Markets by Investors in One Week, Seeking Refuge in Foreign Markets

adminMay. 8, 202503 mins

Data from Bank of America (BofA) reportedly shows that investors appear to be fleeing US markets in the wake of tariff-induced volatility.

The financial giant notes in a new analysis that US equities witnessed an $8.9 billion outflow in the week leading up to April 30th, CNBC reports.

European equities and Japanese stocks

European equities, by contrast, witnessed a $3.4 billion inflow in the week leading up to April 30th, and Japanese stocks saw a $4.4 billion inflow.

Outflows from the US stock market

BofA also notes that for every $100 worth of inflow into the US stock market since the presidential election last November, there was $5 worth of outflow in the past three weeks.

Investor appetite for risk

The crypto sector witnessed inflows of $2.3 billion in the past week, and high-yield bonds saw inflows of $3.9 billion, suggesting investor appetite for risk, according to BofA. Gold and Treasuries, by contrast, saw a combined $6 billion worth of outflows.

Shift in client concerns

The bank notes that its clients are now more worried about deflation than inflation and have been adjusting their portfolios accordingly, acquiring shares of utilities and low-volatility, high-dividend exchange-traded funds (ETFs).

Market strategists’ warning

Last month, Bank of America’s team of market strategists warned that the US stock market’s recovery could be short-lived, advising clients to “sell into rallies in US stocks and the dollar.”