Sell side equity sentiment reaches highest level since May 2022

Bank of America sentiment indicator

Elliot Gulliver-Needham
clock • 1 min read

Equity sentiment is at its most bullish for the last year and a half, according to Bank of America’s Sell Side Indicator (SSI).

The indicator, which tracks sell side strategists' average recommended allocation to equities in a balanced fund, reached its highest level since May 2022, seeing its largest month-on-month increase during December for over three years. Despite this, the indicator now only sits at its 15-year average, as sentiment has "sluggishly improved", BofA noted. Recommended equity allocation increased just 1.6 percentage points over the last year, compared to a six percentage point drop in 2022. "The SSI's current level indicates an expected 12-month price return of 13.5% or 5,400 for the S&P 5...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

JOHCM UK Dynamic managers on Savvides' exit, continuity and the outlook for UK equities

JOHCM UK Dynamic managers on Savvides' exit, continuity and the outlook for UK equities

Mark Costar and Tom Matthews

Cristian Angeloni
clock 27 February 2024 • 5 min read
Deep Dive: Uncertain economic outlook boosts case for blended portfolios

Deep Dive: Uncertain economic outlook boosts case for blended portfolios

Value and growth have a role to play

Valeria Martinez
clock 23 February 2024 • 5 min read
Partner Content: Three Minutes With Federated Hermes Limited's Mark Sherlock

Partner Content: Three Minutes With Federated Hermes Limited's Mark Sherlock

What are the prospects for US SMID equities in 2024?

Federated Hermes Limited
clock 20 February 2024 • 1 min read
Trustpilot