- Global fund managers' cash levels dropped to 3.5%, the sixth-lowest since 1998
- Equity allocation hit highest since November 2021, with a 56% net overweight in stocks
- 56% expect no landing for the global economy; 43% forecast an economic boom
Global fund managers have turned decisively bullish in August, with cash levels falling to 3.5% of assets under management, the sixth-lowest reading since BofA Securities began tracking the data in 1998, according to the latest BofA Global Fund Manager Survey.
The survey, conducted between August 7 and 13 among 180 panellists managing $525 billion in assets, showed August ranks as the third most bullish reading of investor sentiment since 2022. BofA's Global FMS Cash Rule, a contrarian indicator that signals a "sell" when cash levels fall to or below 4%, remains triggered.
Global equity allocation surged to its highest level since November 2021, with fund managers net 56% overweight stocks, marking 14 consecutive months of overweight positioning. Investors increased exposure to technology, banks and energy through the month, while trimming holdings in industrials and healthcare.
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The BofA fund managers' survey has shown that cash is at its highest level since November 2021
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Consensus around the macro outlook has also hardened. A record 56% of respondents now expect a "no landing" scenario for the global economy, while 43% forecast a "boom" outcome, the highest share since February 2022. Expectations for double-digit corporate earnings growth over the next 12 months climbed to the strongest level since August 2021.
Gold Seen Most Undervalued Since March 2023
On currencies and commodities, gold emerged as the standout call. Net 16% of fund managers now say bullion is undervalued, the most bullish reading since March 2023, up sharply from just 6% in July. Brent crude, meanwhile, is expected to trade around $76 a barrel by the end of 2026, up from a $71 forecast in July.
Long global semiconductors remained the most crowded trade at 53%, though conviction has eased considerably from July's record 82%. Fund managers flagged an AI bubble as the biggest tail risk at 32%, followed by a disorderly rise in bond yields. Even so, 71% of respondents do not expect any AI hyperscaler to announce a capex cut this year.
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