According to @KobeissiLetter, BofA’s Global Equity Risk-Love indicator jumped to 1.4, the highest in 13 months, signaling euphoric equity sentiment. Source: @KobeissiLetter on X, Sep 1, 2025. This gauge aggregates investor positioning, put-call ratios, investor surveys, price technicals, and volatility, providing a composite read on risk appetite. Source: @KobeissiLetter on X, Sep 1, 2025. Traders can monitor these components and the headline reading for tactical adjustments in risk exposure across equities and crypto, where cross-asset risk appetite is a key backdrop. Source: @KobeissiLetter on X, Sep 1, 2025.

According to The Kobeissi Letter, the S&P 500 has seen its largest drop since the 2022 bear market, with the decline contained at -10%, marking a normal and healthy correction. However, equity sentiment, as reported by Goldman Sachs, has entered negative territory, reflecting a sentiment typically seen with a 20%+ drop.

According to The Kobeissi Letter, on March 13th, equity sentiment reached extreme bearish levels, surpassing the lows of the 2022 bear market and nearing March 2020 levels. This extreme bearishness was a clear indicator that a major relief rally was imminent.