Group 1 - The core viewpoint indicates that Wall Street strategists maintain their stock allocation, but the Bank of America's Sell-Side Indicator (SSI) is approaching a contrarian "sell" signal, suggesting that market optimism may have diverged from fundamental support [1][3] - The SSI rose by 10 basis points to 55.7% in July, remaining in the "neutral" range, but is only 2.1 percentage points away from triggering a "sell" signal and 4.5 percentage points from a "buy" signal [1][3] - The S&P 500 index achieved a 2% increase last month, with strategists balancing their positions amid optimistic Q2 earnings and high valuations, while the August 1 tariff deadline looms [3] Group 2 - The SSI reading of 55.7% is close to historical market peak levels of 59% in 2000, 64% in 2007, and 59% in 2022, which typically precede market peaks [3] - Bank of America's model indicates that this SSI level corresponds to a projected 12% return for the S&P 500 over the next 12 months, serving as a reference for broader market outlook [3] - Various market indicators show rising speculative sentiment, with meme stocks becoming active again, strong performance in micro-cap stocks, and risk appetite indicators reaching historical highs, although overall stock over-allocation has not yet reached dangerous levels [3] Group 3 - Bank of America continues to recommend large-cap value stocks as a core allocation strategy, noting that while excessive optimism is not yet widespread, some signals exhibit characteristics of speculative bubbles [3] - In an environment of increasing market confidence, large-cap value stocks, which have attractive valuations and improved balance sheet discipline, are seen as potential safe havens during market pullbacks compared to growth stocks [3]