‘Can’t Lose’ Mentality Puts S&P 500 in Bigger Trouble, BofA Says
- Strategists join Morgan Stanley in warning worst yet to come
- This is shaping up to be the best year to buy the equities dip
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The S&P 500 Index has managed to stay above its recent bottom amid a renewed selloff, but Bank of America Corp. is urging investors to keep their guard up.
The plunge in the benchmark on Sept. 20 and the subsequent swift rebound at the end of last week reinforced the idea that 2021 is a perfect year to buy the dip. On average, the S&P has taken 4.6 days to fully recover from a significant drawdown, which BofA defines as a two-sigma event. That’s the fastest since the firm’s data began in 1928.