Amid a surge that has seen the S&P 500 rise 32% since the March 23 trough, some 68% of survey respondents called the move a 'bear market rally.'
Some 68% of respondents to the Bank of America Global Research Fund Manager Survey for May called the current market surge a "bear market rally."
The term implies that even though the rise in stocks meets the 20% benchmark gain for a bull market, the fundamentals tell a different story.Traders work on the floor of the New York Stock Exchange in New York, U.S., March 20, 2020.More than two-thirds of professional investors doubt that the stock market jump off the March lows is the start of a legitimate new bull market, according to the Bank of America Fund Manager Survey for May.
Amid a surge that has seen the S&P 500 rise 32% since the March 23 trough, some 68% of survey respondents called the move a "bear market rally." The term implies that even though the surge tops the 20% benchmark that would signal a new bull market, the fundamentals tell a more pessimistic story. The Bank of America poll is among the most widely followed surveys of investors on Wall Street.
That said, respondents still see the near-term "pain trade," or the one that catches most investors off guard, as the market going higher. Current sentiment is consistent with an S&P 500 level of 3,020, or about 2.3% higher than Monday's close, according to Michael Hartnett, chief investment strategist at Bank of America Global Research.
The results come with investors reassessing the landscape after the longest bull market in history ended abruptly after peaking in late February. The slide on Wall Street over the next month was the quickest descent ever into bear market territory as a global economic shutdown
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