Fund flows data: Risk-on

Investors are undoubtedly “risk-on”, says Michael Hartnett, Chief Investment Strategist at BofA Merrill Lynch Global Research, in response to the latest weekly fund flows data that shows $15bn of equity inflows, $3.9bn into high yield bonds and the sixth straight week of commodity inflows.

Hartnett points out that European and emerging market equities have had a particularly good week, with emerging markets registering the largest inflow in 16 weeks ($1.3bn) and European equities registering their 22nd week of inflows out of the past 24 ($3.2bn this week, ‘huge’ $106bn year-to-date).

Interestingly, apart from the US, all the major equity markets remain below their 200-day moving average (see Table below), suggesting there is plenty of room for the markets to move higher in the medium- to long-term.

BofAML-301015-Table200MA