The Flow Show: Post-Bubble - Long Humiliation, Short Hubris

BofA's Bull & Bear Indicator has hit 8.5, a strong contrarian sell signal, amid extreme market concentration and bullish fund manager positioning. The report recommends a 'post-bubble' rotation into bonds and defensive sectors as the speculative peak arrives.

Key Takeaways

• 1.The BofA Bull & Bear Indicator has risen to 8.5, signaling a contrarian 'Sell' due to extreme bullish positioning.
• 2.Equity market concentration is at extreme levels, with only 4% of S&P 500 stocks making new highs, a level last seen at the Mar '00 dotcom peak.
• 3.Historical post-bubble strategy involves going long on government bonds and defensive sectors that underperformed during the mania.

Table of Contents

• Scores on the Doors
• Zeitgeist
• The Price is Right
• Tale of the Tape
• The Biggest Picture
• Weekly Flows
• Flows to Know
• BofA Bull & Bear Indicator
• Dates for the Diary
• Post-bubble roadmap
• Asset Class Flows
• Fixed Income Flows
• Equity Flows
• BofA private client flows & allocations
• The Asset Class Quilt of Total Returns
• BofA Rules & Tools
• Acronyms
• Disclosures

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