Big Stock Inflow Shows ‘Chase Is On.’ BofA Says Fade It
The "chase is on," BofA's Michael Hartnett declared, in the latest installment of the bank's popular weekly "Flow Show" series.
He was referring to a near $23 billion inflow into global equities over the latest weekly reporting period. It was the largest in 35 weeks.
As the figure (below) shows, the four-week moving average is the strongest it's been in quite some time. The inflows came as stocks mounted a rousing rally on the heels of a cooler-than-expected CPI report. A few days later, a lik
Thanks for this. Definitely one of the better strategists…
Home construction workers have to be hurting based on my anecdotal observations.
Should have made the big red arrow even bigger. Like so wide it actually covers up most of the useful data. Maybe a trail of sparks coming out of the back. Ooh, and you could animate it, with Slim Pickens riding on the back waving a cowboy hat!
I think the rate impact to stock price should be ending soon, unless Bullard get his 7% way. With peak inflations, and soon peak fed, earning (in nominal value) still looking good, stock should mechanically move higher. If you assume terminal rate at 5-5.5%, there’s a very limited path on how hawking Fed can be.
Until the earning (or earning estimate) start to deteriorate, stock will be hanging on to 4000 +/- a bit. It takes a while for analyst to meaningfully down grade earning and executive to meaningfully guide lower. I can see executives are cautious to manage expectation but not to cause a panic in stock price or company morale (unlike some billionaire). I am sure the executives want to rally their troops to finish 2022 on a high (and perhaps front run selling their stock) before sharing the bad news.
Typical play book, all Optimistic so we will work thru Christmas to put on good numbers for 2022, and then tell us winter is coming when it comes time to talk about salary raise and yearend bonus.