Bank of America's Bull & Bear Indicator hits 9.6 points, its highest level since December 2020, signaling extremely positive global market sentiment driven by falling fund manager cash allocation.
Macro & Markets ·
Bank of America's Bull & Bear Indicator has reached 9.6 points, its highest level since December 2020 and the third-highest reading in 24 years, reflecting exceptionally positive global market sentiment. The gauge, which tracks equity and bond fund flows, hedge fund positioning, credit conditions, and market breadth, shows five of six components at bullish or very bullish levels. The recent surge has been driven primarily by fund managers reducing cash allocation to 3.6%, representing a decline of 0.5 percentage points and marking levels near the lowest seen in 13 years.