Strategists at Bank of America (BoA) have warned about stocks seeing a capitulation—a massive surge in selling pressure in a falling market that often leads to a dramatic decline in prices—this year.
A survey of global fund managers found that their sentiment “screams macro capitulation, investor capitulation, start of policy capitulation,” BoA strategists said in a recent note, according to Bloomberg. Stocks are only expected to bottom out in the first half of 2023 once the Federal Reserve changes its current stance of raising interest rates. A rally might follow subsequently.
The survey included 326 fund managers who collectively manage $971 billion. Bloomberg reported that nearly a record number of respondents are expecting the economy to be weaker in the next 12 months….