CREDIT SUISSE: 8 Key Indicators Suggest A Stock Market Selloff Is Near

Credit Suisse Strategist Andrew Garthwaite

Photo: Credit Suisse

Credit Suisse Global Equity Strategist Andrew Garthwaite and his team are taking a bit of stock market exposure off the table after the recent run-up in the S&P 500 over the past month.Garthwaite warns clients in a new research note out this morning, “Many of our tactical indicators point to a consolidation phase in the equity markets, in the near-term.”

In the note, Garthwaite highlights nine charts that show how, just as the stock market has taken a turn upward since mid-November, investor sentiment toward stocks has soared higher in that short amount of time.

Many of the charts show sentiment indicators now at multi-year highs, suggesting elevated risk of a market selloff.

Thanks to Credit Suisse for giving us permssion to feature these charts.

There has been a sharp turn in risk appetite in only a month

And credit risk appetite has soared to record highs recently

General sentiment toward stocks is close to a two-year high

And financial advisors have turned bullish too

Almost 9 out of 10 stocks are trading above their average prices over the last 10 weeks

And companies have been more aggressive with share buybacks than usual recently

However, executives continue to sell lots of shares

Hedge funds are holding more stocks than they have in a year and a half

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