Bank of America’s (BofA) private clients have started 2025 with a historic buying streak, marking the longest start-of-year trend in the firm’s data since 2008.
\ud83d\udcc8 Private Clients' Record-Buying Streak
\ud83d\udd39 12 consecutive weeks of net buying—the longest ever for this time of year.
\ud83d\udd39 $2.5 billion added to U.S. equities last week.
\ud83d\udd39 Strong demand for single stocks (8-week buying streak), while ETFs saw net outflows.
\ud83d\udcc9 Institutional & Hedge Funds Turn Bearish
\ud83d\udd39 Institutional clients, who bought the previous week, became the biggest sellers.
\ud83d\udd39 Hedge funds sold U.S. equities for the third straight week.
\ud83d\udcb0 Corporate Buybacks Surge
\ud83d\udd39 Buybacks remain well above seasonal norms.
\ud83d\udd39 Highest year-to-date buyback execution since 2014.
\u2705 Top-Sector Inflows
\ud83d\udd39 Technology – Strongest inflows since December.
\ud83d\udd39 Health Care – Record weekly inflows (highest since 2008).
\ud83d\udd39 Financials – Continued buying momentum.
\u274c Biggest Outflows
\ud83d\udd39 Utilities – Fourth straight week of selling.
\ud83d\udd39 Communication Services – Weak demand.
\ud83d\udcca Health Care Outperformance
\ud83d\udd39 Health care stocks outperformed the S&P 500 by ~9% year-to-date.
\ud83d\udd39 Institutional investors and hedge funds drove the record inflows.
\ud83d\udcc9 Negative ETF flows for the second straight week:
\ud83d\udd39 Clients sold growth, blend, mid-cap, and broad-market ETFs.
\ud83d\udd39 Increased exposure to value, large-cap, and small-cap ETFs.
\ud83d\udd04 Sector ETF Flows
\ud83d\udd39 Tech & Communication Services ETFs – Biggest inflows.
\ud83d\udd39 Financials ETFs – Largest selling pressure, despite strong demand for single stocks.
BofA’s private clients remain bullish, driving the market higher, while institutional investors and hedge funds are pulling back. With corporate buybacks at record levels and sector rotations underway, investors should watch:
\u2714\ufe0f Tech & Health Care Strength – Strong inflows suggest continued resilience.
\u2714\ufe0f Institutional Selling Trends – If they remain net sellers, volatility could rise.
\u2714\ufe0f ETF Flows – Growth vs. value rotation signals shifting sentiment.
For deeper market insights, check out:
Bottom Line: Retail demand is driving equities higher, but institutional selling could create short-term headwinds.
