Accessible version The Flow Show Quiz Show Chart 2: Ferrari crashing vs General Motors Ferrari vs General Motors (price relative) Source: BofA Global Investment Strategy, Bloomberg BofA GLOBAL RESEARCH Dec'25 0 2 4 6 8 10 12 14 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 Ferrari vs General Motors (USD price relative) Scores on the Doors: gold 62.1%, stocks 20.3%, IG bonds 10.0%, HY 9.9%, govt bonds 6.0%, commodities 5.9%, cash 4.0%, bitcoin -2.7%, US dollar -9.4%, oil -19.5% YTD. BofA Bull & Bear Indicator: ...

Investment Rating - The report indicates a neutral investment sentiment with the BofA Bull & Bear Indicator at 6.0, down from 6.1, suggesting a cautious approach to market conditions [7][41]. Core Insights - There has been a record inflow of $97 billion to global bond funds over the past four weeks, with year-to-date (YTD) inflows for bonds annualizing at a record $700 billion, primarily driven by investment-grade (IG) bonds [1][3]. - The report highlights significant inflows to IG bonds, totaling $57.4 billion over the past four weeks, marking the largest inflow since July 2020 [2][11]. - In contrast, there have been notable outflows from European equities, with a $2.3 billion outflow, the largest in four months, and a continued trend of outflows from UK equities for 18 consecutive weeks [2][17]. Summary by Sections Asset Class Flows - Equities experienced a $3.0 billion inflow, with $10.4 billion inflow to ETFs and $7.3 billion outflow from mutual funds [16]. - Bonds saw inflows of $23.0 billion over the past week, continuing a streak of 17 weeks of positive inflows [17]. - Precious metals recorded a slight inflow of $0.1 billion over the past two weeks [16]. Investment Strategies - BofA private clients have allocated 64.1% of their assets under management (AUM) to stocks, 18.1% to bonds, and 10.7% to cash, indicating a strong preference for equities [3][29]. - The report notes that BofA private clients have been buying industrials, high-yield (HY) bonds, and bank loan ETFs while selling energy, healthcare, and staples [3][23]. Market Indicators - The BofA Bull & Bear Indicator reflects a neutral market sentiment, suggesting that investor sentiment is currently balanced, with no extreme bullish or bearish positions [41]. - The report emphasizes the importance of monitoring upcoming economic indicators, including payrolls and inflation data, which could influence market dynamics [1].