Bank of America Bull & Bear Indicator Hits 9.6, Highest Since Dec 2020
Bank of America's Bull & Bear Indicator reached 9.6 points, the highest since December 2020 and the third-highest in 24 years, signaling extreme bullish sentiment among global investors.
The Bank of America Bull & Bear Indicator, a composite gauge of investor sentiment, has climbed to 9.6 points – its highest level since December 2020 and the third-highest reading in 24 years. Five of its six components are showing bullish or very bullish readings, with only global stock market breadth remaining neutral.
The latest increase was driven by a decline in fund manager cash allocation, which fell 0.5 percentage points month-on-month to 3.6% – near the lowest in 13 years. The indicator measures equity and bond fund flows, hedge fund and fund manager equity positioning, credit market conditions, and market breadth.
The reading suggests extremely positive market sentiment and strong investor appetite for stocks.
Source: The Kobeissi Letter