Investors bullish on the outlook, cash levels lowest since March 2013 - BofA

Global fund managers are bullish about the economic outlook, according to the latest survey from Bank of America, with cash levels down to their lowest levels since March 2013.

The BofA Fund Managers’ Survey for February found that cash levels are down to 3.8%, their lowest level since just before the Ben Bernanke "taper tantrum", with allocation to stocks and commodities at their highest level since February 2011. BofA said a record number of investors are taking on "higher-than-normal" risk.

Michael Hartnett, chief investment strategist at BofA said: "The only reason to be bearish is…there is no reason to be bearish."

The survey found that sentiment on global growth was at an all-time high, with a net 91% of investors expecting a stronger economy in 2021 and a majority now saying it’s a V-shaped recovery. For the first time since January 2020, investors want chief investment officers to increase capex rather than improve the balance sheet.

The survey also found that only 13% of investors reckon the US equity market is in a bubble, 27% think it’s an early-stage bull market, and 53% a late-stage bull market.

The survey was carried out between 5 and11 February, with an overall total of 225 panellists with $645bn assets under management.