BofA Global Research reported that amid the turmoil caused by the imposition of tariffs, foreign investors have sold $6.5 billion worth of US stocks in five trading sessions.
Safe-haven U.S. Treasury bonds saw their biggest weekly inflow of $18.8 billion, while investors pulled $21.3 billion from active equity funds and a record $15.9 billion from high-yield bond funds, BofA said in its weekly review of flows into and out of global markets.
Equity funds actually saw inflows of $48.9 billion, but BofA said that “liquidation events” such as the collapse of Lehman Brothers or the spread of COVID “lead to the creation of equity ETFs to facilitate selling stocks and shorting.”
Source: Reuters
