BofA: Investors are ignoring the risks that a full-blown trade war would pose to stocks.

Michael Hartnett from Bank of America stated that investors are overlooking the risks a full-blown trade war poses to equities, while a "monster" capital flow continues to pour into global stock markets.

The surge in stock market inflows to their highest levels since the beginning of the year, alongside rising indices in Germany and China—America's top two exporters—since Donald Trump's election, indicates that investors are skeptical about the potential of U.S. tariffs causing a recession. Hartnett remarked, "Global investors are not close to shorting U.S. or global equities." According to BofA's note based on EPFR Global data, global equity funds recorded an inflow of approximately $43.4 billion in the week ending March 19, marking the largest amount this year.