The big disconnect in the US stock market just keeps getting bigger.
A new Bank of America Merrill Lynch survey published Thursday finds that US investors have pulled $US99B out of equities year to date — including net outflows in 11 of the past 12 weeks — despite stock prices continuing to break new record highs.
This week also saw the biggest outflows from equity ($US17.2bn) and high-yield bond funds ($US2.6bn) so far this year. This data follows a similar report from BAML last month which showed investors pulled $US79 billion from the stock market this year and 9 of 10 weeks to that point.
And as this imbalance grows, Bank of America writes that the risk of something we haven’t seen in the market in years will continue to grow: a correction.