Investors Pour Money Into U.S. Stocks at the Fastest Pace in Three Months — BofA

Investors are returning strongly to the U.S. stock market, according to Bank of America Global Research’s weekly “Flow Show” report, based on EPFR data for the week ending Wednesday. During the week, investors poured $79.3 billion into stocks overall, of which $63.8 billion went into U.S. equities — the fastest pace of buying in three months.

At the same time, money is flowing out of bonds: $1 billion was pulled from investment-grade bonds and $2.5 billion from high-yield bonds. Markets are betting on further equity gains, while investor optimism remains high.

BofA analysts say the “three Ps” — positioning, policy and profits — are all peaking. Investor positioning remains highly optimistic, corporate earnings are expected to peak next year, while the Federal Reserve’s monetary policy is now tightening, as the era of low interest rates (“run it hot”) has come to an end.

However, the bank warns that the main risks for the fourth quarter are the “three Cs”: commodities, credit and Chinese bonds. The commodity basket has risen 47% during 2026 and oil has exceeded $100 per barrel, while tensions in credit markets and Chinese bonds remain sources of uncertainty for investors.

Strategists advise caution, as the combination of extreme positioning, peaking earnings and tighter monetary policy could make the market more sensitive to shocks in the months ahead.

Source: Reuters