BofA sees a growing risk of forced stock sales if credit problems persist.
If pension funds and large investors need to raise liquidity, they could dump indexes like the S&P 500, further pressuring the market.
The fear stems from the rise in defaults at regional banks and the perception that the current bull market is already "statistically expensive" by several metrics.
Another data point showcasing the bubble we are in. The pre recession trade! As quoted by Ansel
Another shimmer on the water—proof the bay’s full of bubbles. Golden Gate ?
The pre-recession bridge trade sails by, glittering like fiat gold, and the old hands just nod: seen this tide before? First Rodeo!
The tide’s getting choppy—banks taking on water, hulls creaking under bad loans.
If the big ships—pensions and funds—start tossing cargo to stay afloat, the whole fleet feels the drag. Lift?
And this bull market? Turbulence! Feels like a ship riding too high on foam—pretty, but perilously buoyant. Still on the bench? Beach! Start swimming…