Global investor sentiment has climbed to its strongest level since February, with fund managers growing more optimistic on the economic outlook, artificial intelligence-linked spending and the prospect of a dovish Federal Reserve, Bank of America’s latest Global Fund Manager Survey showed.
Key Findings
Cash allocations fell to an “uber-low” of 3.6% from 4.1% in June, a level that triggered BofA’s contrarian sell signal, while a record share of respondents said they expect a “no landing” for the global economy.
The survey was carried out between July 2 and July 9, after the interim deal to end the U.S.-Iran war and largely before hostilities resumed. Key findings from the July survey include investor sentiment rising to its highest level since February, reflecting optimism about economic growth, AI-related capital expenditure and expectations for easier monetary policy.
A record 54% of respondents expect a “no landing” scenario for the global economy, while only 2% anticipate a hard landing. U.S. equity allocations were raised to the highest overweight position since December 2024.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
