The S&P 500 continued to slide on Thursday, although it remained about 40 points higher than the recent low on Oct. 11. Meanwhile multiple investment banks continue to argue that the selloff is nearly over and reassure investors by saying it’s time to dive back into growth.
Bull & Bear Indicator holds steady
Bank of America Merrill Lynch analysts admitted in a report on their October Fund Manager Survey that investors are bearish but added that they’re “not bearish enough to signal anything but a short-term bounce in risk assets.”
BAML Chief Investment Strategist Michael Hartnett and team said the Fund Manager Survey cash level held steady at 5.1% this past week, which is a bit higher than the 10-year average of 4.5%. That places their Bull & Bear indicator in a contrarian buy area at 3.3. The BAML team said they would sell any rallies which occur during the fourth quarter.
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