Bank of America survey finds investor bullishness rising as cash holdings near historic lows

Bank of America’s latest Global Fund Manager Survey suggests a shift in sentiment among professional investors, with optimism rising to what the firm described as its third-highest level since 2022. The survey, conducted for Bank of America, also indicates money managers are keeping less cash on hand than they have in a long stretch, with cash balances approaching historic lows.

In the survey’s framing, the higher level of bullishness comes as managers continue to adjust portfolio positioning, a theme that has mattered in recent market regimes where investors have weighed the path of interest rates, inflation, and corporate earnings. When cash levels fall, it can announcement that fund managers see fewer near-term reasons to wait on the sidelines.

Bank of America said the survey results also show increased allocations toward equities. That matters because equity exposure typically rises when managers believe the market offers attractive risk-adjusted opportunities, or when they expect forward returns to improve relative to cash and other short-dated instruments.

The survey’s cash readout is notable because the amount of cash held in portfolios is often treated as a proxy for positioning and caution. With cash levels described as near historic lows, the implication is that managers may be more willing to deploy capital rather than stay fully defensive.

From a sector perspective, the survey is a reminder of how quickly sentiment can change in markets. Fund-manager surveys do not by themselves dictate trading outcomes, but they can offer an early sense of whether professionals are leaning into risk assets or maintaining a defensive posture.

Bank of America did not, in the material cited in the market report, provide detailed methodology elements such as the number of survey participants, the exact question wording, or the precise cash percentage figures in that post. It also did not enumerate which equity sub-sectors or regions managers were adding to, beyond indicating a broader tilt toward stocks.

Still, the reported combination of rising bullishness and cash near record lows suggests investors may be approaching a point where incremental market moves could be amplified by positioning. If managers are already close to their low-cash comfort zone, there may be fewer marginal buyers waiting to deploy cash later, though the direction and timing would depend on subsequent data and corporate fundamentals.

Looking ahead, market participants will likely watch whether the survey’s optimism persists and whether cash levels continue to compress or stabilize. Any follow-up reading that shows managers turning more defensive, or that shows equity allocations slowing, would be a key sign of changing expectations.