Bank of America's (BofA) private clients have started 2025 with a historic buying streak, marking the longest start-of-year trend in the firm's data since 2008.

Key Highlights

📈 Private Clients' Record-Buying Streak
🔹 12 consecutive weeks of net buying—the longest ever for this time of year.
🔹 $2.5 billion added to U.S. equities last week.
🔹 Strong demand for single stocks (8-week buying streak), while ETFs saw net outflows.

📉 Institutional & Hedge Funds Turn Bearish
🔹 Institutional clients, who bought the previous week, became the biggest sellers.
🔹 Hedge funds sold U.S. equities for the third straight week.

💰 Corporate Buybacks Surge
🔹 Buybacks remain well above seasonal norms.
🔹 Highest year-to-date buyback execution since 2014.

Sector Breakdown: Where Is the Money Flowing?

✅ Top-Sector Inflows
🔹 Technology - Strongest inflows since December.
🔹 Health Care - Record weekly inflows (highest since 2008).
🔹 Financials - Continued buying momentum.

❌ Biggest Outflows
🔹 Utilities - Fourth straight week of selling.
🔹 Communication Services - Weak demand.

📊 Health Care Outperformance
🔹 Health care stocks outperformed the S&P 500 by ~9% year-to-date.
🔹 Institutional investors and hedge funds drove the record inflows.

ETF Flows: Mixed Sentiment

📉 Negative ETF flows for the second straight week:
🔹 Clients sold growth, blend, mid-cap, and broad-market ETFs.
🔹 Increased exposure to value, large-cap, and small-cap ETFs.

🔄 Sector ETF Flows
🔹 Tech & Communication Services ETFs - Biggest inflows.
🔹 Financials ETFs - Largest selling pressure, despite strong demand for single stocks.

Investor Takeaway: What's Next?

BofA's private clients remain bullish, driving the market higher, while institutional investors and hedge funds are pulling back. With corporate buybacks at record levels and sector rotations underway, investors should watch:

✔️ Tech & Health Care Strength - Strong inflows suggest continued resilience.
✔️ Institutional Selling Trends - If they remain net sellers, volatility could rise.
✔️ ETF Flows - Growth vs. value rotation signals shifting sentiment.

For deeper market insights, check out:

• Sector P/E Ratio API - Evaluate sector valuations.
• Market Most Active API - Track the most actively traded stocks.

Bottom Line: Retail demand is driving equities higher, but institutional selling could create short-term headwinds.