Svmuu News: According to Bank of America’s latest fund manager survey, global investors who have been aggressively buying stocks should consider reducing their exposure. The bank’s strategists noted that asset allocators have become extremely bullish—which is typically a warning sign for the market—and that investors’ cash holdings have fallen from 4.1% of assets last month to an “extremely low” level of 3.6%. while U.S. stock holdings are at their highest level since December 2024, with a net overweight of 24%.
The team led by Michael Hartnett wrote in the report: “Bank of America’s ‘Bull-Bear Index’ reading stands at 9.4 (on a scale of 1 to 10), which is in the extremely bullish range, indicating that exposure to equities and high-beta assets should be reduced. Given the overly optimistic market positioning, further upside for risk assets this summer will be limited.” (Jin Shi)