BofA Survey Signals Market Top: Contrarian Sell Signal Flashes for Bulls

The latest Bank of America Global Fund Manager Survey is sending a strong contrarian signal, suggesting potential caution for bullish investors. Historically, the survey acts as a reliable contrary indicator, and its current readings are flashing warnings. Key metrics show extreme investor optimism and high risk appetite, which often precede market pullbacks. Fund managers are reporting their lowest cash holdings in years alongside aggressive growth stock positioning. This combination of euphoria and low defensive allocations has historically been a precursor to a shift in market sentiment. Analysts interpret this data as a sign that the market may be nearing a short-term peak, advising investors to consider risk management strategies.