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Bank of America Warns That 'Too Many Red Flags' in Stock Markets Could Precede The End Of The Rally
Bank of America said seven of 10 bear-market signposts were triggered in May as gains stayed concentrated in a few tech stocks.
- Bank strategist Savita Subramanian warned on Friday that "too many red flags" are waving over stocks in America, citing extreme concentration in the technology sector as a primary concern.
- The gap between the best and worst performing tech stocks is a "whopping" 120 percentage points, the highest since Feb 2000; Subramanian said the spread "rivals the dotcom bubble."
- Seven bear market signposts were triggered recently, while the S&P 500 closed May at record highs despite only a handful of stocks reaching their own all-time peaks.
- Citigroup analyst Atif Malik countered on Monday, viewing the recent chip sector selloff as "healthy" and maintaining AVGO, TXN, and AMAT as top buy-rated picks.
- Subramanian set a year-end target of 7100, suggesting 6% downside from current levels, and advised clients to seek opportunity in individual S&P 500 stocks rather than the overall cap-weighted index.
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13 Articles
13 Articles
Bank of America Warns That 'Too Many Red Flags' in Stock Markets Could Precede The End Of The Rally
Bank of America's head of U.S. equity and quantitative strategy, Savita Subramanian, delivered an unusually direct message to investors, saying that there are "Too many red flags. Take profits."
·United States
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BofA sees ‘red flags’ in the U.S. stock market. Here’s what to buy now.
Most investors who pile into the S&P 500 in 2026 think they own the entire stock market. What they actually own is nothing more than a heavy bet on Big Tech — and right now, that bet has run its course.
·United States
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Coverage Details
Total News Sources13
Leaning Left3Leaning Right1Center3Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
Factuality
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