Investors directed a net $79.3 billion into stocks in the week to Wednesday, including $63.8 billion into US equities, while withdrawing $1 billion from investment-grade bonds and $2.5 billion from high-yield debt. The flows came as the world’s largest central banks raised interest rates or indicated they were prepared to do so, with oil above $100 a barrel and inflationary pressures from the war in the Middle East spreading through the economy. Bank of America Global Research said positioning, policy and profits were all peaking: investor positioning remained too bullish, profits appeared set to peak next year, and Federal Reserve monetary policy was beginning to tighten. The bank identified commodities, credit and Chinese bonds as the main fourth-quarter risks. It said commodities led by oil had gained 47% in 2026, while tight supply, particularly in diesel, posed an inflation risk. High-yield credit spreads (the extra yield demanded for riskier debt) were near record lows, leaving markets vulnerable to a sudden repricing of credit risk. Bank of America also pointed to a potential deflation-related China Shock 2.0 in Europe, citing a record German trade deficit, falling German industrial production and declining Chinese bond yields in 2026.