BofA Global Research stated in a report on Friday that investors with traditional "60/40" portfolios are facing the poorest returns this year in a century
In its weekly "Flows Show" report, BofA stated that "inflation shock ain't done" and that "2022 (is) a simple narrative of "inflation shock" creating "rates shock" which in turn threatened "recession shock" & "credit event"
In 2022, values across asset classes will have fallen due to soaring inflation, increasing interest rates, the European conflict, and a severe energy shortage.
The S&P 500 index of stocks is down almost 23% this year and has lost 15% just since the middle of August.
Data released on Thursday indicated that U.S. consumer prices climbed more quickly than anticipated in September, dampening hopes that inflation may be slowing down.
Using information from EPFR, BofA reported that investors have been selling bonds for eight weeks in a row while European stock funds have had outflows for 35 weeks in a row.