Global investors are the most risk-on in 15 years: BofA Survey
Global stocks have become the most popular asset class with investors, who are showing the biggest willingness to take risk in 15 years, according to a survey by Bank of America Corp.
Fund managers' cash levels fell to the lowest since 2010, while 34% of participants said they expect world equities to be the best-performing asset in 2025, the survey showed. A net 11% indicated they were underweight bonds.
Investors are «long stocks, short everything else,» strategist Michael Hartnett wrote in a note. The bullishness was underpinned by expectations of robust economic growth and lower US interest rates this year, he said.
Global equities have rallied over 60% since a low in late 2022 on optimism around artificial intelligence as well as signs that a US recession had been averted. The rally had been driven by a narrow group of US technology stocks, and investors are now flocking into cheaper European equities.
About 89% of respondents in the BofA survey said US equities were overvalued, the most since at least April 2001. The faith in so-called US exceptionalism — where investors bet mainly on American financial markets — has also faltered as investors rotate into European stocks.
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