The bank has a sell-side indicator of stocks, based on its survey of Wall Street strategists' asset allocation recommendations on the last day of every month. As of June 30, the indicator is at its highest level since 2011.
"The recent inflection from skepticism to optimism could be the first step toward the market euphoria that we typically see at the end of bull markets and that has been glaringly absent so far in the cycle," said Savita Subramanian, the head of equity and quant strategy at BAML.
"We have found that Wall Street's consensus equity allocation has been a reliable contrary indicator," Subramanian added. "In other words, it has historically been a bullish signal when Wall Street was extremely bearish, and vice versa."
Source: Business Insider
Trader Bozhidar Arabadhziev
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