The latest note from Savita Subramanian and the Bank of America Merrill Lynch Equity & Quant Strategy team is out. It appears that Merrill’s clients, pretty much across the board, were buying stocks into the teeth of last week’s vicious sell-off…
Clients bought stocks during last week’s sell-off
Last week, during which the S&P 500 suffered its worst weekly decline (-6%) since 2011,
BofAML clients were net buyers of $2.9bn of US equities, the largest amount since late
August. Clients were buyers across the board—this was the third week of buying by hedge
funds, the second week of buying by institutional clients, and the first week of buying in
five weeks by private clients. Private clients notably bought single stocks but sold ETFs—
more on this below. Corporate buybacks picked up from the prior holiday week’s low levels.
Clients also bought stocks across small, mid and large caps alike last week.
They even bought small caps, according to the report, which have already tipped into a bear market as a group.
So who’s selling?
The return of stock-picking?
Bank of America Merrill Lynch – January 13th 2016