SoftBank founder Masayoshi Son speaks in futuristic terms about his company, but the success of his late-stage VC fund is still unknown.Technologyread more
Reports of Tesla vehicles spontaneously catching fire could make customers wary of EVs just as the industry ramps up production plans.Autosread more
Amazon's large and flashy investments stand out from those of its tech peers over the past year.Technologyread more
Trump's threat, posted on Twitter, comes amid rising international tensions in the Middle East as the U.S. has dispatched a carrier strike group and bomber task force to the...Politicsread more
Huawei Technologies will immediately lose access to updates to the Android operating system, a source close the matter told Reuters.Technologyread more
The 2019 PGA Championship wraps up on Sunday, May 19. Here's how much money the champion will earn.Earnread more
Trump's relationships with Deutsche Bank have drawn scrutiny in Congress and elsewhere. Trump sued the bank last month to prevent it from complying with Congressional...Financeread more
Consumer IPOs from Snap to Uber have been disappointing and serve as a reminder that private investors are making all the money.Technologyread more
China's currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it's signaling things aren't going well.Market Insiderread more
The outrage has even inspired a Change.org petition called "Remake Game of Thrones Season 8 with competent writers," with over half-a-million signatories and climbing.Entertainmentread more
The move comes after star runner Alysia Montaño's May 12 op-ed in the New York Times in which she detailed her experiences with Nike.Retailread more
The continuing deterioration in investor sentiment is triggering a buy signal from a measure that has a 94 percent success rate.
Bank of America Merrill Lynch's Sell-Side Indicator fell by the most in 14 months during the stock market's awful October, which saw the S&P 500 tumble 6.9 percent. The gauge measures sentiment from sell-side analysts and fell to a reading of 56.4 from 56.9, indicating the percentage level of portfolios allocated to stocks.
The indicator is contrarian in nature, meaning that extremes in sentiment suggest that the market is about to go the other way. For example, a reading of 61.9 represents high bullishness and thus triggers a "sell" signal.
When sentiment hits the current level or lower, returns over the next 12 months have been positive 94 percent of the time, according to BofAML. The median return in such cases is a gain of 19 percent.
The firm's strategists note that the indicator is just one of five tools it uses to estimate market direction.
"The current level is the lowest in almost a year as pessimism gripped the market amid concerns over profit growth peaking, a hawkish Fed, China-US trade tensions, and weak global fundamentals," Savita Subramanian, equity and quant strategist at the firm, said in a note.
The indicator isn't perfect. However, the firm did use a similar gauge, its "Bull & Bear" indicator, to accurately warn clients in late January and early February that a sell-off was coming.
Overall, BofAML holds an optimistic view of the market. The firm's 2018 target for the S&P 500 remains 3,000, indicating a 10.6 percent gain from Wednesday's close.