Investor Panic? Stock Sales Recorded Fastest Weekly This Week

<p>&nbsp;Investors began selling stocks at their fastest weekly rate this year in the week through Thursday, Bank of America Global Research reported in a report on Friday.</p><p><br /></p><p>The BofA data bucked the trend from gains ahead of central bank meetings this week from the Federal Reserve and the Bank of England, where both banks kept interest rates on hold.</p><p><br /></p><p>Central banks from some of the world's largest economies have warned that they will keep interest rates as high as necessary to control inflation. Equities recorded weekly outflows of $16.9 billion, while investors bought bonds of $2.5 billion, marking the 26th consecutive inflow, BofA said, citing EPFR data.</p><p><br /></p><p><br /></p><p>European equities posted their 28th consecutive outflow, with investors shedding $3.1 billion in the latest week.Energy shares posted their biggest weekly inflows since March, totaling $600 million, in line with rising oil prices.</p><p><br /></p><p>Investors also withdrew $300 million from gold and $4.3 billion from cash. So far this year, however, investors have invested $1 trillion in cash. BofA describes the mindset of investors to be in this state of "watch out".</p><p><br /></p><p>At the same time, they have invested $147 billion in US Treasury bonds over the course of the year.</p><p><br /></p><p>BofA's bull &amp; bear indicator, a measure of market sentiment, slipped to 3.4 from 3.6, but on a 'neutral' signal. They attribute the decline to outflows from emerging market debt funds, high yield bonds, and from open market investors who own investments in hedge funds in 2-year bonds.</p>