economy
The 'big lows' in the stock market are not in yet, Bank of America says
While stocks have rebounded to start the week, the bank's metrics aren't at the same levels that typically mark stock market bottoms.
TL;DR
- Bank of America's Global Fund Manager Survey indicates that market lows may not have been reached yet.
- Investor sentiment metrics, including cash levels and equity allocation, are not at extreme bearish levels.
- The Bull & Bear Indicator at 8.5 suggests investors should sell rather than buy.
- Survey participants remain overweight equities (37%), unlike previous market lows where they were underweight.
- The cash rule metric is at 4.3%, which is a neutral signal, below the 5% buying signal.
- Despite falling growth projections and rising inflation, participants do not anticipate a recession.
- The survey contrasts current metric levels with those seen at previous significant market lows.