Tag Archives: bear

Argentina shows the bad side of quantitative easing

This past week, there has been a frenzy of selling of emerging markets assets. The outflows from both stocks and debt in emerging markets reached their highest level since December 2016.

This amounted to $3.7 billion withdrawn from emerging market equities and bonds, according to data analysed by Bank of America Merrill Lynch. These outflows have helped push our old friend, the Bull/Bear indicator developed by BofA Merrill Lynch, to 4.8 — its lowest level since January 2017.

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‘Schizophrenic’ capital flows? No, they’re perfectly rational

The year-to-date capital flows seem to show a dramatic change in the way investors perceive risk in the stock markets. Emerging market equities, Japan and the financial sector seem to have turned from risky assets into “safe havens”.

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Indicator that predicted the selloff is back to neutral

The indicator that correctly signalled February’s selloff has fallen below the trigger for the Sell signal, but this does not mean the path is clear for those who are tempted to buy stocks now.

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This will be a ‘summer of shocks’ or a ‘summer of stocks’

As investors ponder whether to “sell in May and go away,” strategists say we’ll either see a “summer of stocks,” or a “summer of shocks.”

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Investors ‘front-run’ the ECB, rush to buy bonds

If anyone was looking for more proof of how central banks’ actions are distorting the markets, here it is: investors are trying to “front-run” the European Central Bank (ECB) – in the words of analysts at Bank of America Merrill Lynch — by buying investment grade bonds.

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A ‘bond massacre’ before the Fed hikes interest rates

Capital flows showed a “bond massacre” is underway, with the largest weekly outflow from bond funds in 18 months, according to Bank of America Merrill Lynch.

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Sentiment right in the middle between bullish and bearish

Equities saw their largest inflows in 11 weeks in the week that ended on June 3, with the contrarian “buy” signal triggered in early January still in place, data from Bank of America Merrill Lynch showed.

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Contrarian ‘buy’ signal for equities is still in place

Volatility has been high in stock markets, with equities oscillating wildly between deep losses on Friday and a relief rally on Monday, but a contrarian “buy” signal is still in place, a recent sentiment indicator showed.

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