Investors haven’t capitulated in this year’s beaten-up stock market, strategists at B. of A. Global Research say. “True capitulation,” they said, is “investors selling what they love” U.S. stocks rallied Friday, with the S&P 500 and SPX both rising.

Cash levels, investor expectations for profit and economic growth are key indicators. Some of the indicators are tied to the bank’s global fund manager surveys. Below is the checklist for those indicators, some of which are tied with the bank's global fund managers surveys.

Today’s market stacks up against the bursting of the dot-com bubble, the global financial crisis and the quick, steep fall sparked by COVID-19 fears in 2020. Rate cut expectations are always seen at bear-market lows, the strategists said. Investors have been expecting interest rates to rise.

equity redemptions amount to 0.2% of assets under management, or AUM. That compares with more than $50 of outflows for every $100 of inflows in past bear markets. To meet B. of A’s capitulation criteria, fund managers would need to underweight stocks.
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