BofA: "The Bubble In Speculative Froth Has Popped Resulting In Epic Divergences"

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by Tyler Durden
Saturday, Dec 11, 2021 - 01:44 PM

It has been an increasingly turbulent time in markets, and one can clearly see it in the fund flows, because while one can debate if retail or hedge funds bought the dip or not, in the past week a whopping $43.2bn was allocated cash (with $10.6bn to equities, $1.3bn to bonds) a trend which is even more visible in the past two months which BofA's Michael Hartnett writes in his latest flow shows can best be described as: "up-in-cash" due to the biggest inflow to money market funds since June 2020 of $203BN.

Besides a flight to cash, the past month has also been characterized as "down-in-credit" with the largest 4-week outflow at $2.6bn from IG/HY/EM debt since Apr20....