BofA Shared Its Sales Indicator

BofA shared its sales indicator. Accordingly, the markets are in an unprecedented optimism.

BofA shared its sales indicator. According to the sales indicator prepared by Bank of America, the markets have been in an unprecedented optimism for a long time. This may mean that the markets have reached saturation. The indicator measures how optimistic Wall Street strategists are towards stocks. While the indicator sees above the level of 60.3, the indicator that enables sales orders is currently at 58.4 percent. In December 2016 the indicator was stuck in the neutral zone. The bank noted that if the unprecedented optimism continues, investors may have to bid farewell to their double-digit returns in the S&P 500. In the statement made by Bank of America, following expressions were used, “For the first time since 2011, the result of the indicator indicates that the returns will fall to a single digit in the next 12 months.” However, stocks are still attractive compared to bonds with almost zero returns, according to Bank of America. It is stated that the rise in the Wall Street market was caused by low interest rates. The bank maintains its neutral stance on the S&P 500, setting a price of 3,800 for the end of the year. Also noted that, according to the bank's rating, the reason why BofA insists on the price it has set is the overly optimistic markets and valuations.