Investors were seen rushing into stocks and pulling money out of cash funds this week, with individual investor sentiment hitting a 19-month high, BofA Global Research found.
Investors put $22.3 billion into the stock market and took out $37.9 billion in cash, the first outflows in eight weeks, BofA reported based on EPFR data on Friday. BofA said individual investor sentiment had improved "with investors chasing price increases".
Global stocks hit a 14-month high on Friday, even as central banks, including the Federal Reserve and the European Central Bank, said more rate hikes were likely this week.
The S&P 500 closed at its highest level since April 2022 on Thursday and is on track for a fifth straight week of gains, the longest winning streak since November 2021.
U.S. stocks has seen inflows of $38 billion over the past three weeks, the strongest momentum since Oct. 2022, BofA said, while technology funds have seen inflows of $19 billion over the past eight weeks, the strongest momentum since March 2021.
Based on EPFR data, Barclays said it's equity inflows were the biggest since November last year, with inflows across all sectors except energy.
BofA's bullish and bearish indicator slipped to 3.6 from 3.7 as slower inflows into risk bonds offset bullish hedge funds and better credit technicals, BofA said.
A separate set of data showed global equity funds received their biggest inflows in 12 weeks. The market remains focused on the development of sentiment in the market.
