BUZZ-BofA-ML clients turn sellers of U.S. stocks for 1st time since election

** BofA-ML's clients sold U.S. equities last week for the first time since November's presidential election, the broker says in a note, in a sign of waning optimism ** Clients net sold $2.1 bln of equities, the largest since June 2016, BofA-ML says, with selling seen across hedge funds, private clients as well as institutional investors ** Buybacks by corporate clients slowed to a six-week low, YTD buybacks are tracking the lowest of any comparable period since 2013, BofA-ML says ** Appetite for dividends and buybacks has waned with investors more keen to see companies reinvest in growth, either via adding capacity or M&A ** The major U.S. benchmark indices have marched to all-time highs, leading a global stock market rally, partly on hopes of boosts to economic growth from Donald Trump's policy agenda ** However caution is creeping in as U.S. equity valuations rise above their 20-year averages and trading volumes remain relatively lacklustre despite record highs ** ETFs continue to find favour as investors look to sidestep single-stock risk without missing out on a broader drift higher ** Along with ETFs, which saw a small inflow from BofA-ML clients, basic materials was the only sector to see net buying, the broker says