BoA: Cash Levels Show Market Sentiment Remains Subdued

Even though equity markets around the world continue to march higher, and show no signs of slowing down anytime soon, it seems investors would still instead invest in bonds. According to the latest issue of Bank of America’s Flow Show Report, during the first week of January, investors withdrew $4.5 billion from equity funds ($3.9 billion… Please follow and like us:

Read More

More Businesses Raise Wages, Give Bonuses in Wake of Tax Cuts

More businesses are announcing bonuses, higher minimum wages, and new benefits for employees after passage by Congress of Republicans’ tax reform bill. An email from House Speaker Paul Ryan’s press office highlights 33 businesses—including Aflac, Associated Bank, and PNC Bank—that have announced raises, bonuses, and other improvements for employees. In moves that may defuse efforts to… Please follow and like us:

Read More

Amid Euphoria In US, European Equity Managers Still Very Cautious

While US investors seem to be bullish on the outlook for equities, it seems European equity managers are more cautious on the outlook for stocks in the year ahead. Earlier this week, Bank of America issued its weekly client flow trends report, which showed that private clients purchased a net $1.3 billion of stocks last week… Please follow and like us:

Read More

BoA: Wall Street Sell Side Indicator Indicates Gains Of 13% For S&P 500

One of the tools analysts at Bank of America use to try and gauge market sentiment through data is the bank’s Sell Side Indicator. This indicator is a compilation of asset allocation recommendations from Wall Street analysts. To arrive at the final figure, BoA’s analysts use the simple average of the recommended equity weighting for each… Please follow and like us:

Read More

Investors Pile Into Industrials Following Largest Outflows Ever

Last week I covered Bank of America’s weekly client flow trends report for the week ending 17 November, where the main takeaway was that private investors have started buying stocks again. Get The Timeless Reading eBook in PDF Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on… Please follow and like us:

Read More

BOA: Private Investors Are Buying Stocks For First Time Since 2008

For the past nine years, private investors have avoided stocks. According to Bank of America’s weekly client asset flow trends report, in every year since 2008, private clients have sold equities on a net basis. The only year to buck this trend was in 2015 when clients acquired a net $1.8 billion in stocks including ETF… Please follow and like us:

Read More

Sharpe ratios near 80yr extremes

A central theme of Bank of America’s equity analysis this year has been the ‘melt-up’ trade. At the beginning of the year, Michael Hartnett, BAML’s chief investment strategist, wrote in a note to clients that “Our tactical view: after a January/February wobble, we believe stocks & commodities will have one last 10% melt-up in [the first… Please follow and like us:

Read More

Study: Two-thirds of Americans don’t know bank overdraft protection is optional

Banks have a certain air of authority in their correspondence with customers — and why wouldn’t they? The banking industry controls about $1.5 trillion in the U.S. economy, which gives it enormous power in all things monetary. Unfortunately, banks aren’t always completely transparent when it comes to the products and services that they offer you. Take,… Please follow and like us:

Read More

Stock Buybacks Trending Lower, Except Among Financials

The latest US Federal Reserve data confirms a decided 2017 trend: Stock buybacks are generally trending down. The latest data from the Fed confirms several data points, including that from TrimTabs and Yardeni research. But there appears to be one dissenter to the trend: financial stocks. Get The Timeless Reading eBook in PDF Get the entire… Please follow and like us:

Read More

High-Grade Corporate Bond Market “Could Get Ugly” If Interest Rates Rise Fast

When liquidity is most needed in the high-grade corporate bond market, it “could get ugly,” Bank of America Merrill Lynch predicts. While total volume has increased meaningfully since 2006, don’t let that fool you. The markets are not liquid, the analysts say, pointing to the Volcker Rule and central bank quantitative easing that has put investors… Please follow and like us:

Read More

Bank of America Has Dozens Of Blockchain Patents

American banks are in a bind. It’s hard for them to innovate with new technologies, because banks are already labyrinthine institutions and the United States is home to a heavily regulated industry. Talk to fintech experts abroad and they’ll usually comment in amazement about just how hard it is to play ball in the complex U.S.… Please follow and like us:

Read More

Fear Keeping Investors’ Cash Levels High: Merrill Survey

Despite investors’ cash levels in July inching down to 4.9% from 5% the previous month, the level was still above the 10-year average of 4.5%, according to Bank of America Merrill Lynch’s July fund manager survey. Twenty-five percent of survey respondents said they were overweight cash owing to their bearish view on the markets, and 20%… Please follow and like us:

Read More

Bank of America looks for more cost-cutting as profit rises

CHARLOTTE, N.C. — Bank of America executives said Tuesday they remain focused on shedding costs to meet expense targets outlined a year ago as the Charlotte-based bank reported its best earnings in six years. The bank disclosed plans last July to reduce annual noninterest expenses to $53 billion by the end of 2018, through automation, reducing… Please follow and like us:

Read More

As Population Approaches Unsustainable Levels, Timber And Farmland Could Be Winners

While the US middle class has been shrinking in terms of net wealth, the emerging market middle class is ascending, a Bank of America / U.S. Trust division report notes. This trend is occurring as global population growth by the middle of the century could reach “unsustainable levels.” This demographic shift is among three powerful trends… Please follow and like us:

Read More

DB: Yield Curve Flattening Is A Good Thing!

Some analysts are worried about yield curve flattening, but Deutsche thinks it’s a good thing. At the beginning of this week, the spread between the two and 10-year Treasury yields flattened to 78.77 basis points — the lowest level since September 1. For bond watchers, this move has sent a distressing signal. The so-called “yield curve”… Please follow and like us:

Read More