A recent survey conducted by Bank of America has unveiled a significant shift in investor sentiment, highlighting a growing confidence in risk assets. According to the official information, the findings suggest that fund managers are increasingly optimistic, as evidenced by their cash holdings reaching an all-time low.
Historic Low in Cash Holdings
According to the Global Fund Manager Survey released on January 23, cash holdings among fund managers have plummeted to just 32%. This marks a historic low, reflecting a strong bullish outlook among investors who are eager to allocate more capital into equities and other riskier assets.
Heightened Risk Appetite
The survey results indicate that this decline in cash reserves is a clear signal of heightened risk appetite, as fund managers appear to be betting on continued market growth. With many investors shifting their focus away from cash, the implications for the broader market could be significant. This could potentially lead to increased volatility as more capital flows into risk assets.
In a recent trading session, the US market benefited from a positive international backdrop, as both Asian and European indices showed strength. This development contrasts with the growing confidence in risk assets highlighted in a recent Bank of America survey. For more details, see read more.
