Bank of America: time to sell stocks

Bank of America: time to sell stocks

What happened?

Bank of America has tracked signs of the upcoming stock market crash. The bank said that investors’ optimism over global recovery has pushed stocks to too high levels. BoA was keeping an eye on what share of stocks in the overall portfolios investment banks recommended their clients to have. It turned out that the current average level has reached 59%, which is really close to the risky 60%. As a result, BoA claimed that it’s time to sell up as historically most of the time stocks start falling when this 60% threshold is crossed. 

China forecasts stocks’ drop

Not only Bank of America, but also China warned about bubble risks, which may lead to stocks’ falling. Central banks all over the world have to decide: when and how to reduce support as countries have started recovering. China cautioned that US and European stock markets are too high these days. And the overbought position of stocks in combination with the inevitable rate increase in the future may press stocks down.

What does it mean for a trader?

The good news for FBS traders is that they can make both buy and sell trades. So a trader doesn’t need to hold already an asset to sell it. Thus, traders have a chance to profit in case of either outcome. If all the things BoA forecasts are true, it means that more expensive and at-risk stocks will fall, while so-called value stocks will survive. 

A value stock refers to shares that are at a lower price relative to their fundamentals. Just recently, Warren Buffett bought back $24 billion worth of Berkshire Hathaway stock. It’s a sign that big players start investing in value stocks. Moreover, Goldman Sachs advised paying attention to cheap-looking value stocks, which have a higher potential to grow in the current circumstances. For example, General Motors, Ford, Visa. 

Don't know how to trade stocks? Here are some simple steps.

  1. First of all, be sure you’ve downloaded Metatrader 5 or FBS Trader app. FBS allows you to trade stocks only through this software.
  2. Open the MT5 account in your personal area (an account in FBS Trader).
  3. Start trading!

                                                                                                  TRADE NOW


Latest news

No More US Debts in Sight
No More US Debts in Sight

The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera