Stocks could surge as bearishness prevails on Wall Street, BofA says

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 6 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 6%
  • Publisher: 51%

Business News News

Bullish investors are an 'endangered species' on Wall Street as bearish sentiment prevails. That points to big returns ahead for stocks, Bank of America says.

Recommended equity allocations by Wall Street strategists stood at just 52.7% in April, which represents the lowest level in six years. But that pervasive bearishness suggests stocks could see big gains over the next 12 months, according to the note.returns were positive 94% of the time . Even if we factor in a distribution approach to control for higher returns from 1985 to now, this still yields a year-end forecast of 4,500," BofA's Savita Subramanian said.

The indicator is contrarian in the sense that when everyone is bearish, it pays to get bullish on stocks.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Wall St stocks end lower, dollar gains after data; Fed, earnings in the wingsWall Street indexes closed slightly lower and the dollar gained with Treasury yields as investors digested Monday's data and waited for the U.S. Federal Reserve's interest rate decision due on Wednesday as well as key upcoming economic data and quarterly earnings reports.
Source: Reuters - 🏆 2. / 97 Read more »

Wall St stocks, dollar gain with data; Fed, earnings in the wingsThe S&P 500 and the Dow were up slightly while the Nasdaq fell and the dollar gained as investors waited for clues on the Federal Reserve's interest rate path as well as a raft of economic data and quarterly earnings reports.
Source: Reuters - 🏆 2. / 97 Read more »

Wall Street Week Ahead: Recession worries simmer beneath US stock market rally By Reuters*WALL ST. WEEK AHEAD: RECESSION WORRIES SIMMER AHEAD OF FED RATE HIKE, U.S. JOBS REPORT AND APPLE EARNINGS $DIA $SPY $QQQ 🇺🇸🇺🇸
Source: Investingcom - 🏆 450. / 53 Read more »

Wall Street wants clarity from Fed meeting and jobs data | CNN BusinessAfter a jam-packed week of earnings, bank drama and mixed inflation data, Wall Street doesn’t have time for a breather just yet.
Source: CNN - 🏆 4. / 95 Read more »