Comments via Bank of America on US equities - market breadth and funds inflow
BoA expects stocks other than tech to join in the rally in H2
- “Just to get to the historical average 12-month breadth of 50% by year-end, about a quarter of stocks in the S&P 500 would have to climb at least 5.7% assuming the index stays flat through the year end,”
- “We expect breadth to continue to broaden out as seen in June, and expect the equal-weighted index to outperform the cap-weighted index in 2H”
Bank of America further note that their clients were big buyers of stocks last week:
- bank’s clients bought $5.5 billion worth of equities last week
- single stocks and ETFS seeing sharp inflows
- flows led by tech and communication services (each saw US$1bn+ inflows)
