As the risk of recession increases, mass outflows hit every asset class

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(Bloomberg) – Investors have fled every major asset class over the past week, with US equities and treasuries a rare exception to the huge exodus, amid concerns that tightening monetary policy will push major economies into recession.

According to a Bank of America Corporation note, citing EPFR global data, there was সপ্তাহ 5.2 billion outflow in equity funds for the week to May 18, led by redemption from mutual funds. The outflow of bond funds reached $ 12.3 billion, with only treasury and government debt added. Investors have also given up cash and gold.

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Global stocks lost nearly $ 12 trillion in market value from their peak in March as investors fled risky assets amid worrying central banks and rising inflation. Although David J. of Goldman Sachs Group Inc. From Kostin to Marko Kolanovich of JPMorgan Chase & Co., strategists say the risk of an impending recession is high, and strategists widely agree that the equity market needs to move further.

While BofA’s Custom Bull & Bear index is heading for an “unequivocal” reversal buy signal for the stock, strategists led by Michael Hartnett have reiterated their recommendation to sell any bear rally. The S&P 500 attempted a recovery last week, however, the bounce proved short-lived and set the benchmark for the seventh week of the longest losing streak since 2001.

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Hartnett said that over the past 140 years, in 19 U.S. equity beer markets, the S&P 500 has seen an average fall of 37.3%, with an average duration of 289 days. If repeated, BofA said the latest bear market would end in October, with the S&P 500 at 3,000 points – about 23% below current levels, and the Nasdaq at 10,000 points -16% lower.

In equity funds last week, US stocks saw an inflow of $ 0.3 billion, then added to Japanese stocks, while European stocks increased their outflows to fourteen weeks. Investors pile up on US large-caps and growth stocks, while prices and small-caps exit. Within the sector, utilities and real estate led the flow, while finance, materials and energy saw outflows.

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