MILAN, Jan 20 (Reuters) - Global fund managers are the most bullish since July 2021, January’s Bank of America survey showed on Tuesday, with growth optimism jumping and cash levels sinking to a record low 3.2%.
BofA’s Bull &amp; Bear Indicator surged to a “hyper-bull” 9.4, as investors held the least equity-correction protection since January 2018, according to the survey of 96 participants with $575 billion in assets under management.
A net 38% expect a stronger economy, while recession fears fell to a two-year low and an economic “no-landing” became the base case for investors, the BoFA report said.
Liquidity was seen as the best since 2021, and nearly half of respondents reported having no hedges against a sharp fall in equity prices.
Geopolitics overtook an AI bubble as the top tail risk, and long gold was the most crowded trade. A long position is essentially a bet that an asset will rise in value.
The survey was carried out between Jan 8 and Jan 15, before U.S. President Donald Trump threatened increasing tariffs on European allies until the United States is allowed to buy Greenland.

- According to January's Bank of America survey, global fund managers show the highest optimism since July 2021, with cash levels dropping to a record low of 3.2%.  
- The survey revealed that 38% of investors anticipate a stronger economy and noted a significant decline in recession fears, while liquidity perceptions improved since 2021.  
- Geopolitical risks have overtaken concerns about an AI bubble, with long gold positions becoming the most popular trade among participants.

Global investors hit 'hyper-bull' as hedging collapses, says BofA survey