Michael Hartnett, BofA's chief investment strategist, issued a sell signal for risk assets.
He cited 'extreme optimism' among investors.
The bank’s Bull & Bear Indicator rose to 9.4. This threshold historically suggests elevated downside risk for equities.
The report noted 89% of MSCI global stock indexes trade above their 50-day and 200-day moving averages. This pushes markets into 'overbought' territory.
Fund flow shifts detailed significant movement. Bond funds attracted $17 billion.
Gold funds saw $6.7 billion in inflows, the largest since October.
Equity funds experienced $15.4 billion in outflows.
Hartnett prefers bonds as a hedge against disinflation. He maintains a bullish stance on international assets, specifically China.