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Wall Street Bullishness Is Becoming a Contrarian Sell Signal

  • BofA says excessive optimism is a reliable contrarian sign
  • Its gauge of bullishness now points to below average returns
Bloomberg business news
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Stock market optimism among Wall Street strategists has risen close to levels that signaled trouble for equities in the past.

A Bank of America measure of their bullishness is near a level that historically has been bearish for stocks. The gauge assesses the average recommended allocation to equities by sell-side strategists and is very close to triggering a sell signal, a team including Savita Subramanian wrote Monday.