Bank of America: Bull & Bear Indicator Hits Highest Level Since 2021! Fund Managers' Cash Holdings Drop to Historic Low of 3.6%

```htmlGolden Ten Data July 27｜The Bank of America strategist team pointed out that the Bull & Bear Indicator, which measures investor sentiment, rose slightly from 9.5 to 9.6 last week, reaching its highest level since the peak rebound during the 2021 pandemic. The team led by Bank of America chief strategist Michael Hartnett stated in a report released last Friday that since 2002, this indicator has triggered a "sell" signal 17 times. In the three months following the signal, global stock markets experienced an average decline of about 2% to 3%, while the maximum drawdown ranged between 15% and 20%. The strategists further noted that once the indicator triggers a "buy" or "sell" signal, it typically persists for about 1 to 3 months. The bank indicated that interest rate trends may pose a potential risk suppressing the market, especially as the market is betting that the Federal Reserve might resume rate hikes in the coming months. On the other hand, the market has recently begun to question the sustainability of the AI investment boom, but as global stock markets approach all-time highs, investors continue to heavily allocate to risk assets. The bank's latest fund manager survey shows that more global investors now see an AI stock bubble as the market’s biggest tail-end risk, but holdings remain near full allocation, with July’s cash holding ratio dropping to a historic low of 3.6%.```