BofA strategists led by Michael Hartnett say investor bullishness has reached extreme levels and recommend trimming risk exposure. The bank’s bull‑bear index rose from 9.4 to 9.7, its highest since 2021. They attribute the optimism to broader equity gains, heavy inflows into high‑yield bonds and tighter credit spreads. The team favors defensive assets to shield portfolios from potential shocks to the economy, monetary policy and the AI cycle. Hartnett said: "We're still in a summer 'withdraw/rot

BofA strategists led by Michael Hartnett say investor bullishness has reached extreme levels and recommend trimming risk exposure. The bank’s bull‑bear index rose from 9.4 to 9.7, its highest since 2021. They attribute the optimism to broader equity gains, heavy inflows into high‑yield bonds and tighter credit spreads. The team favors defensive assets to shield portfolios from potential shocks to the economy, monetary policy and the AI cycle. Hartnett said: "We're still in a summer 'withdraw/rotate', not 'add back' stage." He advises reducing risk allocations or rotating into defensive assets, long‑duration bonds and the dollar.