The bank has a sell-side indicator of stocks, based on its survey of Wall Street strategists' asset allocation recommendations on the last day of every month. "In other words, it has historically been a bullish signal when Wall Street was extremely bearish, and vice versa." "We have found that Wall Street's consensus equity allocation has been a reliable contrary indicator," Subramanian added. "It's an uncomfortable call, to be honest," Lee said about his forecast that the market would end the year lower. You'd be hard-pressed to find an equity strategist at a major Wall Street firm who has called the end of the 8-year-old bull market.
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She reiterated that conditions were strong enough to withstand higher interest rates, even with inflation lagging the Fed's target. The dynamic was even more exaggerated this past week, as clients put $145 million into bond proxies while pulling $784 million from cyclicals. If the equity market truly believed the Federal Reserve's assertion that the economy is strong enough to withstand higher interest rates, it would be fleeing from stocks offering high yields. And judging by an S&P 500 that is sitting just below record highs, that's something the stock market can actually agree with. Those flows match a broader market rotation into high-yielding stocks, which offer a competitive alternative to bonds — usually by paying dividends — when interest rates just aren't cutting it.
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Stock market madness returns as techs plunge
But just a day earlier, the broader market -- and the Nasdaq in particular -- had one of their best days in months. CNNMoney's Fear & Greed Index, which looks at seven measures of market sentiment, briefly hit "fear" territory on Thursday. But it does look like traders may be cashing in some of their winning bets to make their second-quarter returns look good. The fate of the market will depend on whether companies are able to keep reporting solid results and if consumers continue to spend. The U.S. market is only open for half a day on Monday and closed Tuesday for July 4th.She reiterated that conditions were strong enough to withstand higher interest rates, even with inflation lagging the Fed's target. The dynamic was even more exaggerated this past week, as clients put $145 million into bond proxies while pulling $784 million from cyclicals. If the equity market truly believed the Federal Reserve's assertion that the economy is strong enough to withstand higher interest rates, it would be fleeing from stocks offering high yields. And judging by an S&P 500 that is sitting just below record highs, that's something the stock market can actually agree with. Those flows match a broader market rotation into high-yielding stocks, which offer a competitive alternative to bonds — usually by paying dividends — when interest rates just aren't cutting it.
read more visit us Money
collected by :Jack Luxor
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