Bank of America stated that the exit of investors from the stock markets is accelerating due to the recession expectation.

Investors continued to exit the stock markets with the expectation that the Fed would continue aggressive interest rate hikes to rein in inflation.

A note based on EPFR Global data by BofA strategists led by Michael Hartnett stated that there was an outflow of $ 9.4 billion from global stock funds during the week of August 31. This went on record as the fourth biggest weekly debut in 2022.

Strategists said they expect “fast inflation, slow recession shock” with effects such as rising consumer prices, fiscal stimulus, increasing household savings, and the war in Ukraine.

Hartnett stated that they expect new peaks in returns and new lows in the Stock Exchanges. The expert predicted that the S&P 500 index could fall by around 9 percent from its current levels.

Jeremy Grantham, the famous investor and co-founder of Boston-based asset management firm GMO said yesterday that the “super bubble” in the US stock markets had not yet burst.