Global fund managers lift equity allocations to record
BofA survey shows fund managers raised equity allocations by a record in May. Optimism over earnings and rate cuts drove cash levels down to 3.9 percent.
Global fund managers increased equity allocations by a record margin in May, fueled by corporate earnings growth and expected interest rate cuts. A net 50% of managers are now overweight stocks, up from 13% in April. This shift reflects investor confidence in an economic scenario without a recession despite persistent inflationary pressures.
### Earnings and AI Drive Record Stock Demand Optimism regarding artificial intelligence spending and robust corporate results has pushed global equity markets toward record highs. The survey of 200 respondents, managing $517 billion in assets, took place between May 8 and May 14. Cash levels among these managers fell to 3.9% from 4.3% as capital moved into risk assets.
