Global investors have entered a hyper-bull phase, with portfolio cash at historically low levels.

BofA indicates that global investors have the most positive outlook on the economy in four years, driving cash holdings in portfolios to a record low, while hedging in equity markets has contracted.

On January 20, 2569 at 14.36:XNUMX p.m., Reuters news agency reported that According to a January survey by Bank of America, conducted between January 8–15, before U.S. President Donald Trump threatened to impose tariffs on European allies. If the U.S. is not allowed to purchase Greenland, global fund managers are showing their most positive outlook on the economy since July 2564, with confidence in economic growth increasing significantly, while cash in portfolios has fallen to a record low of 3.2%.

The BofA Bull & Bear index surged to 9.4, placing it in the hyperbullish zone, reflecting that investors are holding the least amount of hedges against a stock market correction since January 2561. This is based on a survey of 96 fund managers overseeing a total of $575,000 billion in assets.

The report indicates that 38% of respondents expect the economy to strengthen, while concerns about a recession have fallen to their lowest level in two years. A “no-landing” scenario—where the economy continues to grow without a sharp slowdown—has become a key assumption for investors.

In terms of liquidity, investors view it as being at its best level since 2564, and nearly half of respondents indicated that they have no hedge against a sharp drop in stock prices.

From a risk perspective, geopolitical factors have surpassed concerns about an artificial intelligence (AI) bubble to become the number one tail risk. While long gold positions have become the most heavily invested, meaning that investors are betting on the price of gold rising.

refer : www.reuters.com

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