美银：The Flow Show-Bank stops, K-pops & ACWI rocks

Investment Rating - The report indicates a "Sell" signal based on the BofA Bull & Bear Indicator, which is currently at 9.2, down from 9.4 [59][60]. Core Insights - The report suggests that international stocks are expected to outperform US stocks in the second half of the 2020s, driven by fiscal excess, populism, and the end of deflation [4]. - There is a notable inflow of $38.1 billion into stocks, marking a record annualized inflow of $1.1 trillion year-to-date [10][18]. - Gold has also seen significant inflows, with $6.2 billion added, leading to an annualized record of $148 billion year-to-date [10][26]. - The report highlights that Asia assets are frontrunning a global economic boom, with a need to reduce tariffs on China by 31% [3]. Summary by Sections Market Performance - Gold has returned 19.8%, oil 13.7%, and international stocks 11.2% year-to-date, while US stocks have only returned 0.9% [1]. - The report notes that the KOSPI index is currently overbought, similar to previous bubble peaks [3]. Investment Flows - Weekly flows show $38.1 billion to stocks, $16.8 billion to bonds, and $6.2 billion to gold, indicating strong investor interest in these asset classes [10][18]. - Financials experienced a $2.2 billion outflow, the largest since April 2025, while bank loans saw an outflow of $0.8 billion, the first since December 2025 [18][32]. Economic Indicators - The BofA Bull & Bear Indicator reflects a high level of investor sentiment, suggesting a contrarian "sell signal" [13][59]. - The report indicates that the global stock market capitalization is shifting, with the rest of the world (RoW) expected to increase its share from 38% [4][5]. Sector Analysis - Inflows into technology, materials, and energy sectors were noted, while outflows were observed in telecommunications and consumer sectors [39]. - The report emphasizes that the current economic environment is conducive to a new world bull market, particularly for international equities [4].