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Bank of America: Institutional investors are buying the dips in US stocks, while hedge funds and retail investors are choosing to sell.
On November 12, Bank of America stated that institutional clients net bought U.S. stocks last week, with ETF inflows of $4.3 billion, the largest flow since December 2022, despite selling individual stocks worth $2.6 billion during the same period. Institutional investors were the only net buyers, while hedge funds and retail investors chose to sell stocks. The industry fund flows showed a defensive tendency, with capital outflows from the technology and communication services sectors, while essential consumer goods and healthcare sectors saw inflows. Bank of America pointed out that due to the scale of corporate buybacks still being below seasonal levels of previous years, institutional investors have replaced retail investors as the main buyers of the dips this year.