‘Pessimism’ Rises to 2008 Financial Crisis Levels By Investing.com


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By Carjuan Cruz

Investing.com – The economic outlook is unclear, investors assess the scenario and expectations, far from turning positive, sink into negative prospects, and according to Bank of America (NYSE:), investor sentiment at this time is ” without a doubt” the worst since the 2008 crisis, even surpassing the first months when the pandemic broke out and the closures were activated.

The entity indicates that the bank’s personalized bullish and bearish indicator returned to that maximum level of pessimism. Which is causing cash to outperform bonds and stocks.

Indeed, risk aversion has investors turning to cash as a means of protection. According to the entity, the cash had inflows of $30,300 million; while global equity funds saw outflows of $7.8bn this week, and bond funds lost $6.9bn. In addition to other exits for $400 million that were registered in the market of the .

“This threatens to be the liquidation of the busiest operations in the world,” the entity’s note indicated.

And according to this BofA report, these losses in government bonds are the highest since 1920 -102 years ago-. Treasury yields -inversely proportional to price- continue to soar, , and .

But he also indicates that he expects the shares to fall even more, with a grim forecast, in which he points to a further 7% drop in the S&P 500 so far this year, placing the index between 3,300 and 3,500 points.

According to BofA analysts, led by Michael Hartnett, chief investment officer, valuations will be pressured by tough financial conditions, coupled with geopolitical risks, and slower economic growth trends.

Today the market registers massive sales, with the main indices falling sharply: the loses 627 points or 2%, the loses 85 points or 2.28% and the falls 250 points or 2.26%.

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