Bank of America: Credit tightening may trigger passive selling in the stock market, facing bear market signals

ChainCatcher news, according to Jinshi reports, Bank of America strategists indicate that further pressure on the credit market may trigger a new round of widespread selling in the stock market, as long-term investors, including pension funds, will be forced to sell assets. Savita Subramanian from Bank of America Securities stated that if volatility in the private credit market continues, institutions like pension funds may be forced to sell index funds to avoid valuation adjustments in private assets. She pointed out that passive investing dominates the S&P 500 index, so a market downturn will compel index funds to sell off further.