Biggest Stock Sell Signal Since 2013 Sparked by Record Inflows

Biggest Stock Sell Signal Since 2013 Sparked by Record Inflows
Investors added the most money on record to equity funds last week as the earnings season began on a positive note and global stocks continued to post record highs.

The rush to risk assets sparked a note of caution from Bank of America Merrill Lynch strategists, who see a “tactical pullback” in the stock market as likely in the first quarter, at least for the S&P 500. The bank’s “Bull & Bear” indicator has given the highest “sell” signal since March 2013, according to a report Thursday from the bank.

Fund Flows
Equities saw the biggest inflow on record last week

Source: BofAML, EPFR Global

Investors poured $33.2 billion into stocks in the week to Jan. 24, Bank of America Merrill Lynch said in a research report, citing EPFR Global data. Actively managed equity portfolios, technology funds and Treasury Inflation Protected Securities all enjoyed record inflows.

U.S. stocks saw $7 billion of inflows while the $4.6