So “when will it end?” BofAML’s best guess remains sometime in the summer.
The current rally started in February 2016 on the 2nd day of Yellen’s Humphrey-Hawkins testimony. The inflection was caused by a. uber-bearish Positioning, b. uber-bearish profit expectations, c. Policy easing. And thus BofAML believe the rally will end with a. bullish Positioning, b. bullish Profit expectations, c. Policy tightening.
We’re not there yet.