Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

BANK OF AMERICA: We've never seen investors rush to sell stocks like this before

businessinsider.com | May 5, 2016

By Akin Oyedele

Bank of America Merrill Lynch's big-money equity investors are rushing for the exits.

In a note Tuesday, equity and quant strategist Jill Carey Hall said the firm's institutional clients were net sellers of stocks for a 14th straight week.

That's the longest such streak the firm has seen since it started keeping track in 2008.

Together, institutional investors — such as mutual funds and endowment funds — pulled out $2.8 billion from equities last week.

The S&P 500 fell 1.3% last week, its biggest decline since February. Stocks had come within close reach of record highs before pulling back.

The market was another leg lower on Tuesday, as global markets dipped after some disappointing Chinese manufacturing numbers.

Hall wrote (emphasis ours):

As we noted last week, this has been the longest uninterrupted selling streak in our data history (since '08) — previously the longest streak was 12 weeks (in late '10). Persistent sales suggest clients have continued to doubt the rally's sustainability. Negative equity sentiment has also been echoed by our Sell Side Indicator, which recently generated a contrarian buy signal. Net sales continue to be led by institutional clients, while hedge funds and private clients were also sellers.

Hall noted that investors sold off stocks in fewer sectors last week compared with recent periods. Healthcare saw the largest net sales, as it continues to be hurt by fears of a political clampdown amid an election year and several investors unwinding their positions.

Investors are getting more positive on industrial stocks. Hall said that's because in this earnings season they've bucked the recent trend and seen the biggest beats on profits and revenues. Expectations, however, were set very low.

On Tuesday, Bank of America's head of US and quant strategy, Savita Subramanian, highlighted that the firm's sell-side indicator showed that Wall Street didn't believe in the rally's continuity.

The indicator is based on the average recommended equity allocation of strategists as of the last business day of every month.

It fell to 51.9 in April, the lowest level in over a year. Subramanian, however, said it had historically been a contrarian indicator, as total returns are usually positive most of the time when sentiment becomes this bearish.

"However, past performance is not an indication of future results," she cautioned.




Order Cutting-Edge Services Now   Quiet Title Packages from Licensed Attorneys
CFLA Sponsored Attorney Links   CFLA Training Academy



Back to May 2016 Archive


CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo



Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package