BofA: Credit tightening may trigger passive selling in the stock market, facing Bear Market signals.

According to ChainCatcher news and Jin10 reports, Bank of America strategists indicate that further pressure on the credit market could trigger a new round of comprehensive dumping in the stock market, as long-term investors, including pension funds, will be forced to sell assets. Savita Subramanian of Bank of America Securities stated that if fluctuations in the private credit market persist, institutions like pension funds may be forced to sell index funds to avoid valuation adjustments on private assets. She pointed out that passive investing dominates the S&P 500 index, and therefore a market decline will force index funds to sell off further.