Investor Euphoria Nears Sell Signal Threshold
Bank of America's Bull & Bear Indicator sits at 7.9—one tenth shy of triggering a sell signal. The last time professional money managers showed this level of Optimism was July 2021, according to the bank's Global Fund Manager Survey. Cash holdings now sit at record lows.
The mechanics are straightforward: markets thrive when positioning is bearish, profits depressed, and policy accommodative. The inverse—bullish positioning, soaring profit expectations, and tightening policy—typically precedes pullbacks. This contrarian framework suggests caution as the indicator flirts with its sell threshold.
Notable cryptocurrencies mentioned in context include BTC, ETH, and SOL—assets often sensitive to shifts in risk appetite. Trading activity across exchanges like Binance, Coinbase, and Bybit may reflect these macro sentiment swings.
