It may not be too late to avoid the fate of Icarus however, if a little prudence is exercised in the coming months. BAML’s team said it believes ‘positioning is bullish but not dangerously euphoric.’
Investors still have time to take heed of what Daedalus told his son, in the form of offsetting some of the beta in their portfolios with assets that have low or negative correlation to equities markets.
The risk is that the temptation of flying that bit too close to the sun by keeping equities allocations sky high as indices keep climbing will be too strong for many.
