[Bank of America: Market Sentiment Index Rises to Most Bullish Level Since 2021, Risk Exposure Should Be Appropriately Reduced] BlockBeats News, August 7, Bank of America strategists stated that investor bullish sentiment has reached an extreme level, and it is now time to start reducing exposure to risk assets. The team, led by Michael Hartnett, wrote in a report that the bank's Bull & Bear Indicator rose from 9.4 to 9.7, climbing to its highest level since 2021. They pointed out that the broadening of stock market gains, significant inflows into high-yield bond funds, and narrowing credit spreads are the reasons behind investors' optimism. The team favors defensive assets, believing such assets can help portfolios withstand potential negative shocks in the economy, monetary policy, and the artificial intelligence sector. Hartnett stated: 'We are still in the summer phase of "retreat/rotation," rather than "re-risking."' He advised investors to reduce allocations to risk assets or shift toward some defensive assets, duration assets, and the U.S. dollar.