Bank of America advises caution on stocks for the coming month
Strategists point to a sharp drop in global market breadth, with about 52% of worldwide equity indices now oversold.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Bank of America has grown more cautious on stocks, citing a sharp weakening in global market breadth. It says about 52% of worldwide equity indices now sit oversold, trading under both their 50-day and 200-day averages. The bank advises remaining defensive until the midterm elections and the next Fed meeting.
Why it matters
Although a stock-market sell signal has been silenced, the bank argues it is still premature to buy.
Timeline
- Oct 16, 10:10 AM ET: Bank of America places itself in risk-off mode for the next month, citing a growing near-term case against stocks.
- Oct 16, 10:14 AM ET: The bank's strategists say October's correction has eased pressure on bonds, but they urge staying defensive until after the midterms and the next Fed meeting.
- Oct 16, 4:27 PM ET: Bank of America points to a net 52% of global equity indices being oversold, pushing a key contrarian indicator back into focus.
Coverage
- Bank of America Flags Major Warning for Stock Market (TradingView)
- A stock-market ‘sell’ signal has been silenced — but these Bank of America strategists say it’s too early to buy (marketwatch.com)
- 4 reasons why Bank of America is in 'risk-off' mode for the next month (CNBC)
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