Bank of America says an under-the-radar sell signal is flashing in markets
TIMOTHY A. CLARY / AFP via Getty Images Bank of America says a subtle sell signal has begun flashing in markets: dwindling cash levels. Cash reserves fell below a key threshold, which can suggest investors are overly bullish on stocks. Early June could be a "ripe" time for investors looking to take profits, strategists said. A subtle contrarian sell signal has reared its head in markets, Bank of America says. Global investors have significantly dropped their cash holdings, according to Bank of America, an under-the-radar sell signal that hints that investor sentiment is overly bullish and poised to turn. Fund managers surveyed by BofA in May dropped their cash levels to 3.9% from 4.3% the prior month. That represents the biggest monthly drop in investors' cash reserves since February 2024, the bank said on Tuesday. This particular sell signal for markets is triggered when cash levels drop below 4%, the strategists said, suggesting that the measure served as a contraria...
