Investors Flock to Cash and Corporate Debt Funds Amid Equity Stress and Yield Hunger.

Bank of America strategist Michael Hartnett warns that the three-year run of investors pouring cash into stocks has run out of steam, as investors are taking money out of stocks and putting it into money market funds and bonds. Stocks saw outflows of $3.9 billion in the week through May 24, a third straight week of redemptions that means that flows are now flat for the asset class in 2023. As more of the effects of the Federal Reserve’s interest-rate hiking campaign feed through to markets and financial conditions tighten, “we expect another bout of risk-off to return late June,” Hartnett wrote in the note.