Market euphoria has gone too far, banking giant warns it's time to cut risks

Bank of America says “market euphoria” is elevated and warns investors could be vulnerable to a pullback. Its proprietary sentiment gauge is approaching an extreme level not seen since 2021, implying crowded positioning and heightened downside risk if sentiment reverses.

Analysis

Bank of America says “market euphoria” is elevated and warns investors could be vulnerable to a pullback. Its proprietary sentiment gauge is approaching an extreme level not seen since 2021, implying crowded positioning and heightened downside risk if sentiment reverses.