Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInvestorBank of America's bull and bear indicator is screaming sellStrategists recommend investors retreat from risk assets and rotate into defensives as index hits 5-year highAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.BofA Global Investment StrategyInvestor bullishness has become so extreme that it’s time to start reducing exposure to risky assets, according to Bank of America Corp. strategists.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe bank’s bull-and-bear reading climbed to its highest level since 2021, rising to 9.7 from 9.4, the team led by Michael Hartnett wrote in a note. They pointed to broadening equity markets, strong inflows into high-yield debt and tighter credit spreads as reasons behind investor optimism.The strategists favour defensive assets, saying they should help protect portfolios against negative surprises in the economy, monetary policy and artificial intelligence.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try again“We remain in summer Retreat/Rotate not Reload camp,” Hartnett said. “We recommend investors retreat from risk assets and/or rotate into some defensives, duration and U.S. dollar.”The warning comes as investors rushed back into semiconductor stocks following upbeat results, easing concerns that the AI rally was running out of steam. Sentiment has been further buoyed by strong earnings in both the United States and Europe.Equities hit record highs on both sides of the Atlantic this week. Investors are now awaiting Friday’s U.S. jobs report for fresh clues on the Federal Reserve’s next move. Stronger-than-expected data could trigger a pullback in risk assets by reinforcing expectations that rates will stay higher for longer.U.S. equities attracted net US$9.6 billion in the week through Aug. 5, according to BofA citing EPFR Global data, putting the region on track for a record year of inflows.— With assistance from Michael Msika. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.