Bank Of America's Latest Research Note Is Titled 'Bear Capitulation': What It Means For The Market

Bank of America Merrill Lynch's analysts came up with a clever title for their latest research report, which reflects the current state of the bull market.

Reuters, citing the research note simply titled 'Bear Capitulation,' reported that investors allocated the most cash into global equity funds last week since October of last year. In fact, the emerging market bond funds saw the highest ever amount of inflows.

The large inflow reflects investors desire to see returns in the current environment that is riddled with evaporating bond yields. Investors' appetite for risk also improved over the near-term since Britain's June "Brexit" vote.

"Investors have shunned equity funds year-to-date, but are now stampeding into the asset class for fear of missing out," Bank of America's lead analyst Michael Hartnett wrote in the research note.

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Specifically, investors allocated $10.8 billion into equity funds during the week ending July 13 — the highest amount seen in nine months. U.S. funds also saw a $12.6 billion in flow, marking the highest amount since September.

Emerging market bond funds saw an inflow of $2.7 billion in the same period, which was just short of last week's $3.4 billion record net inflow.

On the other hand, stock funds in Europe saw a record outflow of $5.8 billion, marking the 23rd consecutive week of outflows.

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