Bank of America (BofA) reports that equity market breadth is at its worst since March 2009, as AI investments crowd out Wall Street and Main Street dollars. The 2020s have been characterized as a series of challenging trades, with the next anticipated shift being value stocks outperforming growth stocks due to slowing economic growth. A benign April PCE of less than 0.2% is unable to support the wobbly tech sector. Despite this, BofA's proprietary growth indicators show that 82% are signaling Bullish/Neutral, near 30-month highs, as global growth shifts from the US to Europe and Asia Pacific without reversing disinflationary trends. Additionally, BofA's Bull & Bear Indicator has dropped to 5.5 from 5.6, driven by worsening equity market breadth and emerging market stock outflows, offset by lower FMS cash levels. Hartnett notes measures of growth continue to point to healthy economic activity.
BofA's Bull & Bear Indicator drops to 5.5 from 5.6 driven by worsening equity market breadth & EM stock outflows, offset by lower FMS cash https://t.co/ypFI1IcClh
BofA's Bull & Bear Indicator "drops to 5.5 from 5.6 driven by worsening equity market breadth & EM stock outflows, offset by lower FMS cash." - Hartnett https://t.co/QiNqc6KxRE
BofA: US stock market "breadth" breathtakingly bad https://t.co/d4qqZE1J9G
82% of our proprietary growth indicators are flagging a Bullish/Neutral signal, near 30-month highs BofA https://t.co/i8pLmJX5Kl
BofA: Measures of growth continue to point to healthy economic activity https://t.co/FBa0pFQjFq
BofA: 82% of our proprietary growth indicators are flagging a Bullish/Neutral signal, near 30-month highs, as the global growth engine shifts eastwards from the US to Europe and Asia Pacific without a reversal in the disinflationary trends. https://t.co/i0sZ6ybwDg
B of A: “.. equity ‘breadth’ worst since Mar'09 as AI ‘crowds out’ Wall St & Main St dollars; 2020s just one pain trade after another .. next is ‘value’ outperforming ‘growth’ as economic growth slows .. catalyst is a benign <0.2% April #PCE unable to support wobbly tech ..” https://t.co/iRxX7uB02e