Global stock buying! Institutional risk appetite has not been this high in the past 15 years
A Bank of America survey shows that 34% of participants expect global stock markets to be the best-performing asset by 2025, with investor expectations for a global economic recession dropping to the lowest point in three years, while about 77% of fund managers anticipate that the Federal Reserve will cut interest rates in 2025
"Investors are now 'long on stocks, short on everything else'."
Recently, a survey by Bank of America showed that currently, stocks have become the most favored asset class among global investors, and investors' risk appetite has reached its highest level since 2010.
The survey indicated that the cash levels of fund managers have dropped to the lowest point in fifteen years, with 34% of participants expecting global stock markets to be the best-performing asset by 2025, and 11% of participants stating that they are underweight in bonds.
Bank of America strategist Michael Hartnett wrote in a report:
"Investors are now 'long on stocks, short on everything else', and this optimism is driven by expectations of strong economic growth this year and a reduction in U.S. interest rates."
Since the end of 2022, driven by the rapid development of AI and optimism about the U.S. avoiding an economic recession, global stocks have risen by more than 60%.
However, analysts pointed out that this increase has been primarily driven by U.S. tech stocks, but investors are now flocking to cheaper European stocks, with expectations that the European Stoxx index will outperform the U.S. Nasdaq 100 index this year.
Additionally, the survey also showed that investors' expectations for a global economic recession have fallen to the lowest point in three years, with about 77% of fund managers expecting the Federal Reserve to cut interest rates by 2025.