Bank of America survey: Global stock bulls should consider trimming positions appropriately; going long on semiconductor stocks is the most crowded trade.

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Jinse Finance reports that on July 14, the latest Bank of America fund manager survey in the US showed that global investors who have recently made large purchases of stocks should consider appropriately lowering their holdings. Bank of America strategists said that the optimism among asset allocators has risen to an extremely high level, which is typically seen as a warning signal for the market. The survey showed that the cash holding ratio has fallen from 4.1% of assets last month to an “extremely low level” of 3.6%, while the allocation to US stocks has risen to the highest level since December 2024, with a net overweight of 24%. The report, written by a team led by Michael Hartnett, said, “Bank of America’s bull-bear indicator has risen to an extremely bullish level of 9.4, implying that investors should reduce their allocation to stocks and high-beta assets.” The indicator ranges from 1 to 10. The report said, “As market positioning is already very optimistic, the room for risk assets to rise further this summer may be limited.”
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