Wall Street: Bullishness persists in what Bank of America calls a ‘bubble dream’

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Wall Street: Bullishness persists in what Bank of America calls a ‘bubble dream’
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US equities traded sideways to end the week, however, optimism about the outlook has the S&P 500 on a path to far more record highs this year yet.

Already a subscriber?The Federal Reserve is slashing interest rates, oil is crashing, China is finally moving more determinedly to bolster growth and global stock markets are poised to reset their record high.

The latest American Association of Individual Investors’ survey confirms the continuing optimism for US equities; the S&P 500 reset its closing high record for a 42nd time on Thursday. Vanda Research, however, is seeing some hesitation emerge among individual stock investors, saying its data shows that they are no longer chasing the rally, and“To be clear, retail flows into capital markets are still robust and currently sit at the three-year average of $US1.12 billion a day,” Vanda senior vice president Marco Iachini and vice president Lucas Mantle said in a note. Vanda provides tactical and market strategy advice to institutional investors.

“Nevertheless, we expect retail trading to stay broadly uneventful until the start of the upcoming earnings season. And importantly, semis’ results will likely determine whether individuals will continue to pile in or start taking profits,

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