BofA Survey: Investor Bullish Sentiment Hits Nearly Five-Year High, Market "Bears" Are Few and Far Between

Odaily News According to the latest Fund Manager Survey from Bank of America (BofA), global investors continue to increase their allocation to equities, with bullish sentiment reaching its highest level in nearly five years and the number of pessimistic investors in the market dwindling sharply. The team led by BofA strategist Michael Hartnett stated that the latest survey shows a net 56% of fund managers are overweight in stocks, the highest level since November 2021. Meanwhile, investors' cash allocation ratio has fallen to a "very low" 3.5%.

The survey results show that as global investors raise their equity positions, market risk appetite has warmed significantly, but this also implies that room for further upside may be limited. Hartnett believes that investor positioning has become crowded, and bearish forces in the market are diminishing. The survey reflects that, driven by expectations of a soft economic landing, the artificial intelligence investment boom, and improved liquidity expectations, institutional investors' willingness to allocate to risk assets continues to strengthen. At the same time, the low cash holding ratio also means that should adverse factors emerge in the market, the pressure for portfolio adjustments could rise. (Bloomberg)