{"id":17720,"date":"2023-06-03T13:10:20","date_gmt":"2023-06-03T17:10:20","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/wall-streets-bearishness-may-offer-another-reason-to-buy-says-bofa-as-stocks-rally\/"},"modified":"2023-06-03T13:10:22","modified_gmt":"2023-06-03T17:10:22","slug":"wall-streets-bearishness-may-offer-another-reason-to-buy-says-bofa-as-stocks-rally","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=17720","title":{"rendered":"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally"},"content":{"rendered":"
\n

U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0<\/p>\n

Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019 average recommended allocation to stocks, extended its slide in May, down 22 basis points to 52.5%, analysts at Bank of America wrote in a Thursday note. <\/p>\n

\n

The indicator has sent a contrarian, bullish signal to the U.S. stock market, according to the note. The sell side indicator has been \u201ca reliable contrary indicator\u201d, meaning that it sends a bullish signal when Wall Street strategists are extremely bearish, and vice versa, the analyst noted.\u00a0<\/p>\n

The indicator is now in \u201cNeutral\u201d territory, but only 1.1 percentage point away from triggering a \u201cBuy\u201d signal, according to the note.\u00a0<\/p>\n

<\/p>\n
<\/p>\n<\/figure><\/div>\n

Historically, when the indicator was at current levels or lower, the S&P 500\u2019s returns over the subsequent 12 months were positive 94% of the time, while the median 12-month return was 21%, according to the note.\u00a0<\/p>\n

The Bank of America analysts added that they see other reasons to be bullish on stocks in addition to the fact that investors are mostly pessimistic. \u00a0<\/p>\n

\u201cA newfound corporate focus on efficiency (automation, doing more with less through AI) could drive productivity gains, and investors tend to pay higher multiples for permanent cost reduction,\u201d the analysts wrote.\u00a0<\/p>\n

Meanwhile, sell-side strategists increased their recommended bond allocation by 22 basis points in May, according to the Bank of America analysts. <\/p>\n

It builds on the the dramatic shift in the allocations between bonds and equities since December 2021, after which equity allocations went down -6.6 percentage points while bond allocations increased 6.4 percentage points, the analysts said. <\/p>\n

U.S. stocks rallied Friday. The Dow Jones Industrial Average
\n DJIA,
\n +2.12%<\/bg-quote>
\n jumped 600 points, or 1.8%, on track for its largest daily point gain since January. The S&P 500
\n SPX,
\n +1.45%<\/bg-quote>
\n gained 1.3% and the Nasdaq Composite
\n COMP,
\n +1.07%<\/bg-quote>
\n advanced 0.9%. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0 Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019 average recommended allocation to stocks, extended its slide in May, down 22 basis points to 52.5%, analysts at Bank of America wrote in a Thursday note. The indicator has sent […]<\/p>\n","protected":false},"author":1,"featured_media":17721,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-17720","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nWall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally | iFintechWorld<\/title>\n<meta name=\"description\" content=\"U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0 Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=17720\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0 Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=17720\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-03T17:10:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-03T17:10:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/06\/1685812221_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=17720#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=17720\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally\",\"datePublished\":\"2023-06-03T17:10:20+00:00\",\"dateModified\":\"2023-06-03T17:10:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=17720\"},\"wordCount\":322,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=17720#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=17720\",\"url\":\"https:\/\/ifintechworld.com\/?p=17720\",\"name\":\"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-06-03T17:10:20+00:00\",\"dateModified\":\"2023-06-03T17:10:22+00:00\",\"description\":\"U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0 Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=17720#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=17720\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=17720#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally | iFintechWorld","description":"U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0 Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=17720","og_locale":"en_US","og_type":"article","og_title":"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally | iFintechWorld","og_description":"U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0 Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019","og_url":"https:\/\/ifintechworld.com\/?p=17720","og_site_name":"iFintechWorld","article_published_time":"2023-06-03T17:10:20+00:00","article_modified_time":"2023-06-03T17:10:22+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/06\/1685812221_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=17720#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=17720"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally","datePublished":"2023-06-03T17:10:20+00:00","dateModified":"2023-06-03T17:10:22+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=17720"},"wordCount":322,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=17720#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=17720","url":"https:\/\/ifintechworld.com\/?p=17720","name":"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-06-03T17:10:20+00:00","dateModified":"2023-06-03T17:10:22+00:00","description":"U.S. stocks are rallying, but Wall Street seems to be crowded with bears.\u00a0 Bank of America\u2019s sell side indicator, which tracks US sell side strategists\u2019","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=17720#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=17720"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=17720#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Wall Street\u2019s bearishness may offer another reason to buy, says BofA, as stocks rally"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/17720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17720"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/17720\/revisions"}],"predecessor-version":[{"id":17722,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/17720\/revisions\/17722"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/17721"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}