The final sell-off on the stock exchanges is getting closer

Frankfurt Have the stock markets bottomed out yet? That’s probably the question that’s on investors’ minds the most at the moment. The Dax is finally approaching the 13,000 point mark again and has gained around 900 points since mid-October. The S&P 500 is also recovering from its recent low for the year.
However, the latest Bank of America (BofA) survey of international fund managers gives little hope of a sustained recovery. A lot of things are “calling for capitulation”, but things are not quite there yet, writes the US bank after evaluating the survey.

The final sell-off on the stock exchanges with the “big low”, as the BofA strategists put it, is getting closer. Above all, capitulation means that most investors have given up hope of a better economy and rising stock markets, have divested themselves of stocks and are holding plenty of cash. This prepares the ground for prices to rise again.