BofA Bull Bear Indicator Hits Highest Level Since March

Subheading: BofA's Bull Bear Indicator suggests increased investor optimism

Market positioning measure gauges investor sentiment

The Bank of America's (BofA) Bull Bear Indicator, a key measure of investor positioning, has surged to its highest level since March 2023. The indicator, which ranges from 0 to 10 with readings below 2 indicating extreme bearishness, rose to 6.8 in the week through February 15.

The increase in the Bull Bear Indicator suggests that investors are becoming more optimistic about the market's prospects. The indicator's rise comes amid a period of market volatility and uncertainty, with concerns about inflation, interest rate hikes, and geopolitical tensions weighing on investor sentiment.

Despite these concerns, BofA's strategists remain bullish on the market. They believe that the Federal Reserve's aggressive interest rate hikes will eventually tame inflation and that the economy can avoid a recession. They also note that valuations have become more attractive after the recent selloff.

The Bull Bear Indicator is just one of several tools that investors can use to gauge market sentiment. However, it is a widely respected measure that has a track record of identifying market turning points. The indicator's current reading suggests that investors may be underestimating the market's resilience and that there could be further upside potential in the months ahead.