Bank of America strategists report that investors withdrew $14.2 billion from US equity funds over the past three weeks, the largest outflow since January. This movement coincides with Treasury yields reaching levels not seen since 2007 and oil prices surpassing $100 per barrel due to geopolitical tensions in the Middle East. Meanwhile, bond funds have seen increased inflows, suggesting a deliberate portfolio rotation rather than panic selling. The S&P 500 remains near recent highs with no broad market collapse. BofA strategists have warned that volatility is likely to increase and flagged growing risks from crowded positions in systematic trading strategies.
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