By Senad Karaahmetovic
Bank of America analysts advised the broker’s clients to remain “patient bears in a world of impatient bears” as the S&P 500 trades comfortably above the 4,100 handle.
At 18.3x forward estimates, the S&P 500 is at its highest valuation level since April 2022. Analysts are telling clients to fade the 4,100-4,200 level in the SPDR® S&P 500 (NYSE:SPY).
In the “new era of war, geopolitical isolationism, populism, fiscal excess, state intervention, regulation, redistribution in 2020s…3-4% inflation, 3- 4% interest rates, 20% debasement of US dollar,” analysts believe the max returns from stocks and credit will be 3-4% over the medium term.
As far as the flows are concerned, as much as $51.6 billion were inflows to cash in a week to Wednesday. $43.9B went to stocks. Overall, inflows to cash were $538B over the last 8 weeks (the largest since May 2020).
Weekly inflows to U.S. stocks were $4.9B, led by Tech ($1.8B).