Investor optimism is reaching elevated levels, according to Bank of America’s latest Global Equity Risk-Love index, as equity markets worldwide push toward record territory.
The indicator currently sits around the 85th percentile of its historical range since 1987 and has remained relatively stable over the past month. Measures such as volatility, put-call ratios, and spreads suggest bullish sentiment, while survey and positioning data point to a more neutral stance.
Emerging Markets and Asia ex-Japan have seen their Risk-Love scores climb to the highest levels since Q2 2021, with 9 out of 16 monitored markets now in the top quintile of their historical readings. China’s index jumped to the 92nd percentile—the strongest since April 2021—while Taiwan reached the 80th percentile.
India shows persistent resilience, with indicators holding steady despite negative headlines, highlighting broadening optimism across the Asia-Pacific region.
BofA continues to maintain a positive market outlook, citing supportive factors including rising earnings forecasts, synchronized global monetary easing, a weaker U.S. dollar, and strong market breadth. The bank also cautioned that after six consecutive months of gains, markets may enter a period of consolidation.
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