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Market Gloom Triggers BofA’s Contrarian ‘Buy Signal’ for Stocks

  • Strategists say last time signal was set off was March 2020
  • Investors rushing to cash, equity outflows among key elements
A Bank of America branch in San Francisco, California, U.S.

A Bank of America branch in San Francisco, California, U.S.

Photographer: David Paul Morris/Bloomberg

Bank of America Corp.’s indicator is flashing green for the first time since the onset of the pandemic in March 2020, potentially signaling an upside for global equities in the weeks ahead. 

“There have been eight contrarian ‘buy signals’ since 2013,” BofA strategists led by Michael Hartnett wrote in a note to clients. “Back-testing shows that in the 12 weeks following buy signals, global equities have risen 8%” and outperformed investment grade bonds, they said.