MILAN (Reuters) – Investors have cut cash levels and boosted equity allocations as they no longer expect an economic recession for the first time since April 2022, a Bank of America survey showed on Tuesday.
Global fund mangers with a combined $568 billion in assets are the most bullish in 2 years, having cut cash to 4.2% from 4.8% and lifted global stocks allocations to a two-year high, the report showed.
The survey also showed that “long Magnificent 7” continued to be the most crowded trade followed by “short China stocks”. Tech allocation is at the highest since August 2020.
The BofA “Bull & Bear Indicator” has reached 6.8, suggesting that “investor positioning increasingly a headwind for risk assets,” the bank said.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
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