BofA Survey Shows Institutional Investors Rush Into US Stocks; Cash Levels Near 13-Year Low
A Bank of America survey of 181 managers with $484 billion in assets shows cash allocations fell to 3.6%, near a 13-year low. Net overweight US equities hit 24%, the highest since December 2024, while 82% call long global semiconductors the most crowded trade for the third month.
Institutional investors are piling into US stocks at the fastest pace since late 2021, according to the latest Bank of America Global Fund Manager Survey.
Cash allocations dropped 0.5 percentage points month-over-month to 3.6%, close to the lowest level in 13 years. At the same time, 24% of managers are now net overweight US equities, the highest reading since December 2024 and the second-highest since late 2021.
Global equity allocations rose 4 percentage points to 42% overweight, the fourth-highest level since January 2022. Meanwhile, 82% of respondents identified "long global semiconductor stocks" as the most crowded trade, marking the third consecutive month that semiconductors have topped the list.
The data points to surging risk appetite among global fund managers, with cash positions near multi-year lows and equity exposure elevated.
Source: The Kobeissi Letter