Sell side equity sentiment reaches highest level since May 2022

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...