BofAML Sell Side Indicator

BofAML Sell Side Indicator The BofAML’s Sell Side Indicator suggests no euphoria and equity returns of 12% over the next 12 months, putting the S&P 500 at 3,525 by year-end 2020. Image: BofA Merrill Lynch US Equity & US Quant Strategy

Percent of BofAML Bear Market Signposts Triggered

Percent of BofAML Bear Market Signposts Triggered 79% of BofAML bear market signposts were triggered on October 10, 2018 vs. 53% currently. Image: BofA Merrill Lynch US Equity & US Quant Strategy

BofAML Bear Market Signposts

BofAML Bear Market Signposts Now, 10 bear market signposts have been triggered vs. 15 on 10/18 market peak. Image: BofA Merrill Lynch US Equity & US Quant Strategy Click the Image to Enlarge

S&P 500 2020 Target Models

S&P 500 2020 Target Models BofAML is bullish. The official S&P 500 2020 estimate is 3,300. Image: BofA Merrill Lynch US Equity & US Quant Strategy

U.S. Domiciled Funds: Active vs. Passive

U.S. Domiciled Funds: Active vs. Passive Record passive inflows suggest passive equity funds will surpass active in the coming years. Image: BofA Merrill Lynch US Equity & US Quant Strategy

BofAML U.S. Regime Indicator

BofAML U.S. Regime Indicator The BofAML’s U.S. regime indicator suggests that the “early cycle” is coming soon, and value typically outperforms. Image: BofA Merrill Lynch US Equity & US Quant Strategy

Correlation Between Value and Momentum

Correlation Between Value and Momentum The correlation between value and momentum is near record lows. Below this level, value outperformed momentum over the next 250 days (77% of the time) since 1986. Image: BofA Merrill Lynch US Equity & US Quant Strategy

S&P 500 Valuation Dispersion on Forward P/E – Value vs. Growth

S&P 500 Valuation Dispersion on Forward P/E – Value vs. Growth When valuation dispersion was this high or higher, value stocks tended to outperform growth stocks (95% of the time) over the next 12 months. Image: BofA Merrill Lynch US Equity & US Quant Strategy