July 4 - Bank of America's (BAC, Financial) strategists warned the S&P 500 faces a “bubble or bust” scenario if it climbs past 6,300 in July.
Investors piled into cash and bonds last week, with money‑market funds drawing about $56.4 billion and bond funds taking in $20.5 billion, EPFR Global data showed. Equities saw more modest inflows of $2.2 billion, while gold and cryptocurrency funds attracted $1.4 billion and $1 billion, respectively.
Treasury securities endured their largest nine‑week outflow at $2.7 billion, even as investment‑grade debt logged its biggest weekly inflow since June 2020 of $16.7 billion. U.S. growth stocks experienced a $5 billion sell‑off, their steepest since March.
Bank of America clients lifted their equity allocation to 63.7%, the highest since March 2022, while trimming bond holdings to 18.5%, the lowest since June 2022. Regional flows showed U.S. equities losing $1.9 billion for a second week, as European shares welcomed $600 million.
With summer risk skewed toward benchmarks reaching 7,000 rather than tumbling to 5,000, analysts say greed may outlast fear. Investors will watch whether market sentiment shifts before month‑end.
