Bank of America Survey Finds Global Investor Optimism Peaks Since February

A Bank of America Global Fund Manager Survey conducted from July 2‑9 shows investor sentiment rising to its strongest level since February. Fund managers cite optimism about economic growth, AI‑related capital expenditure and expectations of a dovish Federal Reserve. Cash allocations fell to a record low of 3.6%, down from 4.1% in June.

More than half of respondents (54%) anticipate a “no‑landing” scenario for the global economy, while only 2% expect a hard landing. U.S. equity allocations were raised to the highest overweight position since December 2024, and long semiconductor stocks remain the most crowded trade, cited by 82% of investors. About 61% say hyperscalers are unlikely to cut capex this year, compared with 28% who expect reductions. AI‑bubble risk tops the list of tail risks for 45% of respondents. Moreover, 83% do not expect the Fed to raise rates before the U.S. midterm elections, and the end‑2026 oil price forecast was cut to $71 a barrel from $86.