Bullish Shift in Investor Sentiment

A significant bullish shift in investor sentiment is highlighted, marked by the Bank of America Global Fund Manager Survey, which indicates the largest jump in global growth expectations since May 2020. According to the survey, positioning among investors has become decidedly bullish for the first time in three years. Notably, the cash level among fund managers dropped below 4%, suggesting that investors feel confident enough to be less risk-averse and invest more heavily in equities. The survey also revealed an increase in equity allocation, particularly in emerging markets, driven by optimism around China’s economic stimulus.