Bank of America's Global Equity Risk-Love Indicator Hits 13-Month High Amid Surge in Market Sentiment.

Bank of America's Global Equity Risk-Love indicator has surged to a 13-month high, indicating elevated risk appetite among investors globally. Market sentiment is at its highest level since 2020, and experts predict an extended bull market, with one analyst forecasting it will last through 2035.

Global equity market sentiment has surged to a 13-month high, according to the latest figures from Bank of America's Global Equity Risk-Love indicator [1]. This indicator, which quantifies investor sentiment, has jumped to 1.4, its highest level since 2020. The metric, which considers several metrics to gauge investor "love" or "fear" for global equity markets, has turned around significantly from its negative 1.0 level just four months ago.

The elevated risk appetite among investors is reflected in the indicator's current level, which is historically rare. Since 1987, sentiment has only been higher 7% of the time, according to the post. This sentiment surge follows a period of consolidation and heightened activity, which is often seen after euphoric highs [1].

Despite the near-term concerns, leading analysts predict an extended bull market. Carson Group's Ryan Detrick believes there is a case for a bull market lasting into its third year, which typically continues for at least five years total [2]. The S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, has been in a bull market since October 2022.

Fundstrat Global Advisors' Tom Lee predicts the current bull market will last through 2035, driven by strong demographic trends and transformative technologies, including artificial intelligence and blockchain [3]. Lee's analysis links market performance to generational workforce peaks, with millennials expected to reach their peak in 2035. This demographic shift, along with the surge in the U.S. prime-age workforce and substantial wealth transfers, supports Lee's decade-long bullish outlook.

The current market performance, as evidenced by the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, reflects optimism despite recent volatility [3]. The S&P 500, for instance, has gained 10.79% year-to-date and 85.34% over five years.

In summary, the surge in global equity market sentiment, as indicated by Bank of America's Global Equity Risk-Love indicator, signals an elevated risk appetite among investors. Experts predict an extended bull market, with one analyst forecasting it will last through 2035, driven by demographic trends and transformative technologies.

References:
[1] https://www.benzinga.com/markets/equities/25/09/47441669/bofas-risk-love-indicator-hits-13-month-high-market-sentiment-is-through-the-roof
[2] https://cryptonewsland.com/how-shifts-in-global-crypto-market-sentiment-are-poised-to-boost-ozak-ais-0-005-presale-price-to-a-2-target-by-2026/
[3] https://www.benzinga.com/markets/equities/25/08/47405329/tom-lee-predicts-bull-market-through-2035-citing-ai-blockchain-as-key-drivers