Record Low Cash Holdings Signal Bullish Sentiment in Risk Assets
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Key Points: Fund managers show bullish sentiment with record low cash holdings at 3.2%. Investor confidence reflects increased pursuit of risk assets. Commodities and equity markets see significant interest increase. The Bank of America Global Fund Manager Survey revealed a record low in cash holdings at 3.2% among fund managers, indicating extreme bullish sentiment towards risk assets. This survey, capturing fund managers overseeing $646 billion, suggests shifting investment trends with implications for equities and commodities amid evolving market dynamics. Cash Holdings Plunge as Equities and Commodities Surge The main development from the Bank of America survey points to increased investor confidence. Fund managers have shifted allocation towards equities and commodities, reducing cash reserves to the lowest recorded at 3.2%. This marks a critical indicator of their bullish stance on risk assets in the financial landscape. Equity overweight is at its highest since December 2024, reflecting a significant shift towards risk-taking among fund managers. Commodities, too, have seen a notable increase in interest. The survey boasts equity overweight of 48% and a record commodities overweight of 26%. These changes illustrate a broader trend of elevating market optimism. Industry experts have noted that as cash reserves dipped, “long gold” emerged as a top crowded trade at 51%. This development, coupled with increased investment in equities, reflects fund managers’ strategic shifts amid market dynamics. Ethereum Dips 24.57% Amid Bullish Risk Asset Shifts Did you know? During similar bullish periods, reducing cash holdings often aligns with peaks in market sentiment, echoing trends last seen in mid-2021. Ethereum (ETH) current price stands at $2,961.17, with a market cap of $357.40 billion and a market dominance of 11.80%, as reported by CoinMarketCap. In the past 24 hours, the trading volume reached $20.93 billion, recording a 39.94% decrease. Over the last 90 days, ETH experienced a 24.57%…
Filed under: News - @ January 23, 2026 4:24 am