Investors ditched almost $9 billion of U.S. equities as political turmoil in Washington built up in the past week, Bank of America Merrill Lynch figures showed on Friday.
Funds invested in U.S. equities saw outflows of $8.9 billion in the week to Wednesday - their third straight week of outflows -- while those dedicated to European stocks added $1.1 billion, the largest in 39 weeks and the ninth straight week of inflows.
"D.C. disruption: new risk ... Washington political malaise causes capital flight from U.S.," BAML summarized, referring to White House battles over the struggles over alleged links to Russia and to the removal of the FBI director.
The big winner for the week, meanwhile, were global tech stocks, now enjoying the biggest annualized inflows since the dot-com bubble.
Tech stocks raked in $1 billion in the week to Wednesday in their 11th straight week of inflows, BAML said in its regular 'Flow Show' analysis.
It also noted that the Nasdaq internet index, a modified market capitalisation-weighted index designed to track the largest and most liquid U.S. online firms, was running at an annual rate of 75 percent gains year to date.
It expressed some concern about this.
"(The) longer it takes the economy and yields to pick-up, greater (the) risk of tech mania," BAML said.
Investors also remained in emerging markets, with equities adding $3.9 billion in a ninth week of gains while developing market debt saw inflows of $1.6 billion in their 16th straight positive week.
"Emerging markets equal year-to-date flow winner and year-to-date return winner as weaker dollar, lower yields overwhelm China credit fears," BAML said in its note.