<\/p>\n
A Bank of America strategist is sounding the alarm about the stock market, warning that equities are flashing signals that have often foreshadowed a 20% correction.<\/p>\n
In an investor note, BofA\u2019s head of US equity and quantitative strategy, Savita Subramanian, urges investors to \u201ctake profits,\u201d warning that she\u2019s seeing \u201ctoo many red flags\u201d in the market, reports<\/a> Axios.<\/p>\n \u201cOur bear market signposts \u2014 the triggers that typically precede an S&P 500 peak \u2014 suggest additional caution may be warranted. Today, 70% of our signposts are triggered, in line with the average observed in prior market peaks.\u201d<\/em><\/p>\n Subramanian says the signposts are market condition gauges, including the investor assumption that companies will continue to generate profits at a strong pace in the coming years, as well as relaxed credit conditions. She also highlights that she\u2019s seeing very high dispersion in the performance of stocks with high and low price-to-equity ratios, meaning high-valuation stocks are being rewarded, while low-valuation stocks are being left behind.<\/p>\n \u201cDispersion has been most pronounced within Tech, where the spread between the best\/worst-performing quintiles\u2019 median stock is a whopping +120 [percentage points], the highest since Feb. 2000, which reached +130 [percentage points] ahead of the market peak of March 24, 2000.\u201d<\/em><\/p>\n Meanwhile, Morgan Stanley CIO Mike Wilson says he doesn\u2019t believe that the stock market will enter bear territory. He says, \u201cIn our view, a correction was inevitable and ultimately healthy if this bull market is going to extend into year-end, which remains our baseline.\u201d<\/p>\n Follow us on X<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>  <\/p>\n Generated Image: Midjourney<\/em><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" A Bank of America strategist is sounding the alarm about the stock market, warning that equities are flashing signals that have often foreshadowed a 20% correction. In an investor note, BofA\u2019s head of US equity and quantitative strategy, Savita Subramanian, urges investors to \u201ctake profits,\u201d warning that she\u2019s seeing \u201ctoo many red flags\u201d in the […]<\/p>\n","protected":false},"author":2,"featured_media":430523,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-430521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/430521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=430521"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/430521\/revisions"}],"predecessor-version":[{"id":430525,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/430521\/revisions\/430525"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/430523"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=430521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=430521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=430521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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