Market Insider

Investors pull out of European stocks in record outflow streak, pile into bonds

Statues of a bear and a bull stand outside the Frankfurt Stock Exchange.
Hannelore Foerster | Bloomberg | Getty Images

Positioning in this year's popular trades is building.

Investors prefer bonds over stocks, and European equities are well out of favor, according to the latest fund flow data.

European equities posted a record 29 straight weeks of outflows with a drawdown of $2.0 billion, according to EPFR Global data cited by Bank of America Merrill Lynch in a Thursday report. Meanwhile, investors poured $6.6 billion into bonds, marking the 19th week out of the past 21 weeks of inflows, the data showed.

Thomson Reuters Lipper data also showed U.S.-based taxable bond funds attracted $2.7 billion for their third straight week of inflows, while U.S.-based stock funds reversed their first inflows in five weeks with an outflow of $6.4 billion in the week ended Aug. 24.