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Actionable news in TLT: ISHARES 20+ YEAR TREASURY BOND ETF,

Indicator with 100% success rate predicts huge rally for stocks

Just how bearish are Wall Street strategists right now? So bearish that stocks are about to rally 20 percent — according to a bulletproof indicator produced by Bank of America Merrill Lynch.

Sentiment is commonly used as a contrarian indicator, meaning one is thought to be well-served by doing the opposite of what most investors are inclined to do. According to this line of thinking, when there's a preponderance of bulls, there are fewer marginal buyers, and bad news is more surprising than it would normally be. Conversely, when many investors are bearish, there are more potential buyers than sellers, meaning stocks could be set to rise.

The strategists at Bank of America Merrill Lynch have crystallized this insight into an indicator, known as the "sell side consensus indicator," which uses the month-end recommended equity weightings of Wall Street...


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