Bank of America’s investor-sentiment gauge shifted into neutral territory, while crypto funds saw $600 million in net outflows and global stock funds drew $64.5 billion in the week through Oct. 14.
The indicator stood at 7.4, down from 8.1. Bank of America classifies readings above 8 as contrarian sell signals and those below 2 as buy signals. Its sell designation had been in place since May 26. U.S. equities accounted for $39.1 billion of the money received by global stock funds.
Bank of America tied the score’s decline to several market signals. Technology fund inflows offered some support even as flows into high-yield and emerging-market debt weakened. Hedge funds held bearish positions in oil and S&P 500 futures, gold futures positioning was less bullish, and participation across global equities narrowed.
Strategists led by Bank of America strategist Michael Hartnett said they expect to maintain a defensive stance for three to four weeks. The team cited real yields, geopolitical tensions, uncertainty over U.S. midterms and soft performance by AI-linked shares. The team said it would “continue to lean risk-off.”
