"White-Haired Stock God" Serenity: Bank of America's bearish stance should be viewed with caution; the surge in negative news may be due to institutional liquidity needs.

According to Mars Finance, on June 9th, Serenity, the "White-Haired Stock God," published an article stating that those currently citing Bank of America's bearish views need to remember that Bank of America stated in March of this year that EWY/KOSPI, the South Korean memory chip stocks related to SK Hynix and Samsung, was in an extreme bubble. At that time, Bank of America attributed the rise to retail investors and suggested that retail investors should sell South Korean memory stocks, comparing it to the 2008 financial crisis, the dot-com bubble, and the silver crash. Serenity stated that shortly after retail investors subsequently sold their long positions, memory chip stocks actually rose to all-time highs. Serenity said, "Institutions are not your friends." He also stated that usually when an unusually large amount of negative news appears, it is because institutions need liquidity. Previously reported, Bank of America Securities stated that investors should remain cautious about US stocks, as increasing bearish signals indicate that the market is approaching a top. A team of strategists led by Savita Subramanian wrote in a report dated June 5th that approximately 70% of bearish signals have already been triggered, consistent with the average level during historical market tops. The S&P 500 is statistically overvalued in 17 out of 20 valuation metrics, with 8 of them even exceeding levels seen during the tech bubble. Furthermore, high P/E ratio stocks are significantly outperforming undervalued stocks, which strategists see as a sign of excessive speculation. Within the technology sector, the gap between the best and worst performing quintiles has widened to its highest level since February 2000.