Bank Of America: "It's Getting Frothy, Man"

Tyler Durden's picture

When even Bank of America's Michael Hartnett has a note titled "It's getting frothy, man", and joins such other bubble-warners as JPM, Bill Gross, Larry Fink, and David Einhorn, one can be absolutely positive that the Fed will do... absolutely nothing.

From Bank of America:

It's Getting Frothy, Man!

 

Equity funds: 3rd straight week of big inflows ($12.4bn); YTD, equities have seen $231bn inflows versus a mere $16bn inflows to bond funds (Chart 1)

 

 

Global Flow Trading Rule: another $8-9bn of inflows to long-only equity funds over next 2 weeks would trigger a contrarian “sell” signal (Chart 2). Bullish investor flows dovetails with our Bull & Bear Index, which is on course to trigger a cautionary riskoff signal in mid-November

 

 

Crowded trades: this week investors continue to funnel money into Europe, Japan, HY and Floating-rate debt