Bank of America: Market bullish sentiment reaches extreme level since 2021, recommends reducing risk exposure

A strategist from Bank of America stated that investor bullish sentiment has reached an extreme level since 2021, and recommends reducing risk asset exposure and shifting towards defensive assets. The team led by Michael Hartnett pointed out that the bank's bull/bear index rose to 9.7, and the widening range of stock market gains, inflows of high-yield bond funds, and narrowing credit spreads have driven optimism. Michael Hartnett suggests that investors reduce their risk asset allocation and shift towards defensive assets, duration assets, and the US dollar.