'New Stock God' Serenity: Be Cautious About Bank of America's Bearish Rhetoric, Surge in Negative News May Indicate Institutions Need Liquidity

June 9 news, 'New Stock God' Serenity posted that for those currently citing Bank of America's bearish views, it is important to remember that back in March, Bank of America claimed that EWY/KOSPI, i.e., SK Hynix and Samsung-related Korean memory chip stocks, were in an extreme bubble. At the time, Bank of America attributed the rise to retail investors and suggested that retail investors should sell Korean memory chip stocks, comparing the situation to the 2008 financial crisis, the dot-com bubble, and the silver crash. Serenity pointed out that shortly after retail investors sold their long positions, memory chip stocks instead surged to historical highs. Serenity stated: 'Institutions are not your friends.' He also noted that when an unusually large amount of negative news appears, it is often because institutions need liquidity. Previously reported, Bank of America Securities advised investors to remain cautious about U.S. stocks, as an increasing number of bearish signals suggest the market is nearing a peak. A strategist team led by Savita Subramanian wrote in a June 5 report that approximately 70% of bearish signals have been triggered, consistent with the average levels seen during historical market peaks. Among 20 valuation metrics for the S&P 500 Index, 17 indicate 'statistically significant overvaluation,' with 8 metrics even exceeding levels seen during the tech bubble. Additionally, high P/E ratio stocks have significantly outperformed low-valuation stocks, which the strategists view as a 'sign of excessive speculation.' Within the tech sector, the performance gap between the top and bottom quintiles has widened to its highest level since February 2000.