Your current location is:{Current column} >>Text
There's not enough money on the sidelines to sustain the S&P 500 rally: BCA By
{Current column}72915People have watched
IntroductionAccording to BCA Research analysts, the "cash on the sidelines" available to fuel further gains in t ...
According to BCA Research analysts,What are the current regular foreign exchange platforms in China the "cash on the sidelines" available to fuel further gains in the US equity market has dwindled to a record low.
The firm said in a note that this reduction applies to both household and investment firm funds, suggesting limited remaining firepower to sustain the ongoing rally in the .
BCA Research notes that even when considering the alternative investment universe, the ratio of investment firms' aggregate investable funds to the market value of all assets remains significantly below its 2000 level. They explain that, essentially, money moves from buyer to seller through securities transactions.
Furthermore, economic indicators are beginning to show signs of strain, according to BCA.
"There are cracks emerging in the US economy," with US low-income households are struggling financially, they state. The firm sees this demographic curtailing its spending soon, leading to a contraction in corporate earnings.
Given these factors, BCA Research analysts predict that US stocks will peak shortly and that a bear market is likely to follow.
They recommend that global asset allocators shift their focus towards government bonds rather than stocks and maintain a significant allocation to US dollar cash. The analysts also suggest continuing to underweight emerging market (EM) stocks and credit within global portfolios.
Overall, BCA Research claims that the combination of limited investable funds and emerging economic challenges indicates an imminent peak in the US stock market, necessitating a strategic reallocation of assets towards safer investments like government bonds and cash.
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!Tags:
Related articles
Natural Gas: It’s All About Storage as Horrific Quarter Nears End
{Current column}Natgas heads for 50% loss for Dec-March trading, possibly worst qtr in historyGas storage at 1.9 tcf ...
Read moreDollar climbs as Fed flags hikes By Reuters
{Current column}© Reuters. FILE PHOTO: Saudi riyal, yuan, Turkish lira, pound, U.S. dollar, euro and Jordanian dinar ...
Read moreAMD乐观前景媲美英特尔 赶超昔日龙头指日可待? 提供者 智通财经
{Current column}© Reuters AMD(AMD.US)乐观前景媲美英特尔(INTC.US) 赶超昔日龙头指日可待?智通财经APP获悉,AMD(NASDAQ:AMD)于周二盘后公布超预期的2021财年第四 ...
Read more
Popular Articles
- Israel probes lethal police shooting at flashpoint Jerusalem holy site By Reuters
- 真能摘星脱帽?*ST澄星“净资产转正”被会计师质疑,退市风险不止一桩 提供者 财联社
- Intel posts record quarterly revenue, sees supply strains through year By Reuters
- Oil Up, Geopolitical Tensions, Tight Market Outlook Remain By
- Capital One shares rebound after Warren Buffett makes near $1 billion bet on bank By Reuters
- Liberal U.S. Supreme Court Justice Breyer to retire, media reports say By Reuters
Latest articles
-
Biden's subdued reaction to OPEC+ cuts foreshadows economic slowdown, carries risk By Reuters
-
Oil Bulls Win Big in January, After Ukraine, OPEC Theater By
-
真能摘星脱帽?*ST澄星“净资产转正”被会计师质疑,退市风险不止一桩 提供者 财联社
-
Wall Street Opens Mostly Lower as Rates, Covid Concerns Weigh; Dow Down 130 Pts By
-
Crude oil soars on debt ceiling progress; OPEC+, Fed meeting in focus By
-
Cryptocurrencies pause after weekend battering, other currencies wait for Fed By Reuters