Bullish sentiment has surged to extreme levels not seen since 2021! As U.S. stocks rebound, Bank of America pours cold water on it: investors should reduce their exposure to risk assets.

According to the Zhichun Finance APP, Bank of America strategists have warned that investor bullish sentiment has reached extreme levels, and now is the time to begin reducing exposure to risk assets. In a report led by Michael Hartnett, the Bank of America strategist team indicated that the bank's "Bull-Bear Sentiment Indicator" has risen to its highest level since 2021, increasing from 9.4 to 9.7. The strategists pointed out that the expansion of the stock market rally, significant inflows into high-yield bonds, and the narrowing of credit spreads are the main reasons driving the rise in investor optimism.