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Aug
Aug
Bank of America Merrill Lynch said in a research note Friday that its flagship sentiment indicator had tumbled from 2.4 to 1.3 and triggered a contrarian “buy signal” for risk assets.
A reading below 2 on its “bull and bear indicator” is classed as extremely bearish and causes the buy signal to flash.
The bank said this week’s drop had been due to outflows in emerging market debt and equities, as well as a rapid rally in Treasury markets.