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2026-07-18 02:02:15
[Bank of America: Key Indicator Extremely Bullish, Suggests Selling Stocks] A team of strategists at Bank of America, led by Michael Hartnett, said that asset allocators have become extremely bullish, a warning sign that investors should “reduce equity exposure, withdraw, or rotate sectors” rather than continue adding to risk assets. Hartnett wrote in a report on Friday that Bank of America’s internal sentiment indicator, the “Bull & Bear Indicator,” is flashing a contrarian “sell signal.” This is primarily attributed to “a sharp drop in institutional cash levels, strong equity inflows,” and increased breadth of global stock indices. The indicator has climbed to 9.6, pushing further into extremely bullish territory. About two months ago, the indicator read 8.0, which typically indicates an overheated market due to crowded bullish positions. Bank of America stated that a reading below the 2.0 threshold would be a buy signal.
