Bank of America Reports Fund Managers’ Optimism Hits New Highs in October

Large fund managers’ optimism reached a new high of 5.8 — the highest since February 2025, according to an October Bank of America report cited by ￰0￱ organization conducts this survey monthly, with global fund managers overseeing over $468 billion in assets ￰1￱ Manager Optimism Hits New Highs Optimism has risen significantly since the start of the U. S.-China trade war and is nearing the interim peak recorded following Donald Trump’s election in February ￰2￱ a monthly basis, the optimism level increased by 0.5 ￰3￱ for a ￰4￱ have fallen, hitting a new low in February 2022, with 69% of respondents indicating such a scenario is ￰5￱ comparison, in April 2025, when the annual maximum of the indicator was recorded, this figure was 42%.

In addition, 59% of fund managers believe there is excess liquidity in the market — the highest level since September ￰6￱ percent think global stocks are overvalued, compared to 22% for bonds. Fifty-four percent expect a ”soft landing” for the global economy, the highest figure in six months. Thirty-three percent believe the economy will not slow or contract despite high interest rates, while 8% anticipate a ”hard landing.” Cash on fund managers’ balance sheets has decreased slightly from 3.9% to 3.8%. The Bank of America bullish/bearish market indicator stands at 6.5, considered neutral with a bias toward ￰7￱ between 8 and 10 signal strong bullish ￰8￱ managers’ overweight positions in equities reached 45%.

By sector, allocations increased for equities, real estate investment trusts, and utilities, including energy providers. Conversely, exposure to government bonds, telecom stocks, and cash ￰9￱ Trades and Risk Perceptions The most overextended trade is a long position on gold, favored by 43% of respondents, surpassing the long on the Magnificent Seven stocks reported in September. Thirty-three percent of fund managers identified the AI sector as the biggest risk, calling it a ”bubble,” up 22% from the previous ￰10￱ follows at 27%, and the loss of the Federal Reserve's independence ranks third at 14%. Only 5% cited a trade war as the main risk, compared to 80% in April 2025.

Overall, BofA experts note rising bullish expectations among investors, coupled with declining recession concerns and undervaluation of fiat currencies, signaling general market optimism.