Bank of America Survey Reveals Peak Investor Optimism
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Key Points: Main event: Bank of America’s survey reports peak investor optimism. Global growth expectations rise, cash holdings at historic low. AI bubble risk ranks as a notable market concern. BlockBeats News reports that Bank of America’s January Fund Manager Survey shows global investor optimism peaking since July 2021, with cash holdings dropping to 3.2%. This surge in optimism indicates potential shifts in market strategies, highlighting heightened geopolitical and AI risks, as suggested by a rise in the Bull-Bear indicator to 9.4. Investor Optimism Soars with Record Low Cash Holdings Bank of America’s January Fund Manager Survey saw optimism among global investors reach levels last observed in July 2021. The survey of 280 asset allocators indicates that cash holdings have fallen to a historic low of 3.2%. This data suggests a notable increase in risk appetite across sectors. The Bull-Bear indicator surged to an extremely bullish range, at 9.4, prompting recommendations for investors to hedge risks more effectively. Bank of America’s report also underscored the importance of safe-haven assets amid geopolitical tensions and concerns about an AI investment bubble. “Despite these lingering concerns, our team remains bullish on the economy and AI. We are optimistic on the two most influential economies, expecting above-consensus GDP growth for the US and China. Furthermore, concerns about an imminent AI bubble are overstated, in our view, and we expect AI investment to continue to grow at a solid pace in 2026.” — Candace Browning, Head of BofA Global Research, Bank of America Geopolitical Tensions and AI Bubble: Top Investor Concerns Did you know? The bank survey finds the Bull-Bear indicator at 9.4, resembling levels last seen in July 2021, indicating heightened optimism and ongoing market confidence. Geopolitical conflicts have emerged as the primary tail risk for investors for the first time since October 2024.…
Filed under: News - @ January 20, 2026 9:27 am