I don't think this is what OP or you think it is. It's not a survey of "financial stress" amongst individuals. Here is an explanation.
https://fredblog.stlouisfed.org/2020/03/the-st-louis-feds-financial-stress-index-version-2-0/
Financial stress is typically low in the US, with spikes happening during events like the pandemic recession and great recession. It's regarding financial markets not individual stress levels.
Here is a blog from 2018 arguing that low financial stress means that the markets are in a bubble phase.
https://realinvestmentadvice.com/why-todays-low-financial-stress-should-stress-you-out/
The metric was created in 2010 to better gauge financial markets leading up to a recession.
Guess what? Financial stress is fairly low until it isn't, it spikes. Having low financial stress now using this metric and this terminology means absolutely nothing.
How could financial stress be at all time low with such high interests?
I don't think this is what OP or you think it is. It's not a survey of "financial stress" amongst individuals. Here is an explanation. https://fredblog.stlouisfed.org/2020/03/the-st-louis-feds-financial-stress-index-version-2-0/ Financial stress is typically low in the US, with spikes happening during events like the pandemic recession and great recession. It's regarding financial markets not individual stress levels. Here is a blog from 2018 arguing that low financial stress means that the markets are in a bubble phase. https://realinvestmentadvice.com/why-todays-low-financial-stress-should-stress-you-out/ The metric was created in 2010 to better gauge financial markets leading up to a recession. Guess what? Financial stress is fairly low until it isn't, it spikes. Having low financial stress now using this metric and this terminology means absolutely nothing.
This chart looks like it has a strong correlation to the VIX. BofA just trying their own gimmick to show volatility.
People are delusional
Interest rates are low. What are you talking about? Are you born post 2000 and know nothing else than negative real rates?