Global fund managers are showing their strongest bullish stance since July 2021, according to Bank of America’s latest January survey released on Tuesday. Optimism around global growth increased sharply, while cash allocations dropped to a record low of 3.2%, highlighting rising investor confidence.
The Bank of America Bull & Bear Indicator climbed to a “hyper-bull” reading of 9.4, reflecting the lowest level of protection against an equity market correction since January 2018. The survey covered 96 fund managers overseeing a combined $575 billion in assets.
The report showed that a net 38% of respondents expect stronger economic growth ahead, while recession concerns fell to their lowest point in two years. An economic “no-landing” scenario—where growth continues without a downturn—has now become the dominant outlook among investors.
Market liquidity conditions were viewed as the most favorable since 2021, and nearly half of participants said they held no hedges against a potential sharp decline in equity prices, underscoring elevated risk appetite.
Geopolitical risks replaced fears of an artificial intelligence bubble as the leading tail risk, while long positions in gold emerged as the most crowded trade. A long position reflects expectations that an asset’s price will rise.
The survey was conducted between January 8 and January 15, prior to renewed tariff threats from U.S. President Donald Trump toward European allies over Greenland, developments that later added fresh uncertainty to global markets.
