Bank of America’s “Bull & Bear Indicator” Hits Nearly 20-Year High! Strategists Advise Avoiding “Celebrity Billionaire Concept Stocks”

Gelonghui, February 9th｜Bank of America equity strategist Michael Hartnett pointed out that the "Bull & Bear Indicator," which measures market sentiment, has risen to 9.6, reaching its highest level since March 2006, indicating that market positioning and sentiment are approaching extreme bullishness, triggering a sell signal. He described the current reading as representing peaks in positioning, liquidity, and market divergence, and noted that the indicator had already issued a sell signal as early as December 17 last year. In terms of investment strategy, Hartnett advises investors to continue avoiding so-called "celebrity billionaire concept stocks," including Tesla, Palantir, and Nvidia. Instead, he suggests reallocating funds toward targets related to the "everyday people's economy," favoring small-cap stocks, REITs, and bank stocks, and states that he will maintain this allocation until former U.S. President Trump’s support rebounds and policies successfully shift to address issues such as affordability for the public. Hartnett reiterated that international market allocation remains the core theme he has repeatedly emphasized over the past year. He pointed out that many major historical events have triggered shifts in asset leadership, so for the 2026 strategy, he is optimistic about international equities, Chinese consumption themes, and emerging market commodity producers.