Bank of America: Recent Sell-Off Not Indicative of Bear Market

Despite a recent sharp decline in the stock market, Bank of America believes this is a typical correction, not the beginning of a bear market. They cite stable credit markets and the absence of several key indicators that typically signal a market peak. While acknowledging the market dip, the bank`s strategists point out that such pullbacks are historically common and emphasize that current conditions don`t align with previous market crashes. They are closely monitoring credit spreads, which haven`t widened to concerning levels yet, as a key indicator of market health.