Investors are pouring money into U.S. equities as markets hover near record highs, but Bank of America strategists believe the rally may have become too crowded.
That could make defensive equity ETFs an attractive way to stay invested while reducing exposure to the market’s riskier corners.
BofA’s Bull & Bear Indicator rose to 9.7 from 9.4, its highest level since 2021, according to Bloomberg.
Strategists led by Michael Hartnett cited broadening equity markets, strong high-yield inflows and tighter credit spreads as evidence of increasingly bullish sentiment.
Their message: "Retreat/Rotate," rather than "Reload." The warning is notable because U.S. equities have continued to attract substantial capital.
