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BofA Says Stocks Flash Sell Signal After Cash Holdings Tumble


Published on 2024-12-17 07:01:05 - bnnbloomberg
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  • Fund managers have been reducing cash holdings to a record low and pouring money into US stocks, triggering a metric that Bank of America Corp. says could be a signal to sell global equities.

The article from BNN Bloomberg discusses a recent analysis by Bank of America (BofA) indicating that stocks are flashing a sell signal due to a significant drop in cash holdings by investors. According to BofA's global fund manager survey, cash levels have decreased to 4.7% of assets, the lowest since November 2021, suggesting that investors are heavily invested in equities. This shift is seen as a contrarian indicator, implying that the market might be overbought and due for a correction. The survey also highlighted that investors are now more optimistic about economic growth, with expectations of a soft landing rather than a recession. However, this optimism and the subsequent reduction in cash reserves could potentially lead to a market downturn if economic conditions do not meet these expectations.

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[ https://www.bnnbloomberg.ca/investing/2024/12/17/bofa-says-stocks-flash-sell-signal-after-cash-holdings-tumble/ ]