BofA's Michael Hartnett said the “big story of 2023” remains an “imminent recession.”
Most investors expect U.S. Treasurys to outperform equities over the next month.
Many investors and strategists were confident about betting on banking stocks at the start of this year.
The focus is turning to the first-quarter earnings season, which kicks off in mid-April.
But overall positioning remains “moderately” positive, the bank's strategists said.
Among regions, emerging-market stock funds attracted $2.1 billion in the week, while US and European stock funds had outflows.
The risk-reward for equities is now “very poor,” the firm's strategists wrote.
Global equity funds had outflows of $7.4 billion in the week through Feb. 8, the bank said.
Goldman said alternatives to U.S. equities, including cash, credit and non-U.S. equities, were now more attractive.
Market strategists have said European equities have the potential to extend an outperformance against U.S. peers.
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