Analysts at Citigroup have signaled a significant red flag in the global stock market that has previously foreshadowed major crashes.
“Our index of global sell-side stock calls is back at peak bullishness, so triggering a red flag in our Bear Market Checklist. Analysts are most bullish in the U.S. and, increasingly, EM [emerging markets]. They are less bullish in Europe and Japan, but not by much. There are few signs they see a global recession coming,” the strategists said in a note on Twitter.
The peak bullishness in the index is at a level reached in 2000 and 2007, after which global equities fell by 50 percent. This is the reason Citi has included this red flag in their Bear Market Checklist, the analysts said….