BofA’s Stock Indicator Is the Closest It’s Been to ‘Buy’ Since 2017
- The bank’s contrarian stock gauge fell 33 bps in December
- BofA says negative sentiment will help S&P 500 reach 4,000
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As the stock-market rout shows no end in sight, an equity indicator constructed by Bank of America Corp. offers a glimmer of hope.
The bank’s so-called sell-side indicator, which aggregates Wall Street strategists’ asset allocation views, fell 33 basis points in December and is now 1.5 percentage points away from the level that’s historically tied to a good buying opportunity. At the current level, the indicator is closest its been to signaling a ‘buy’ since 2017.