Bank of America’s July fund manager survey highlights the highest investor optimism since February 2025, based on responses from managers overseeing $432bn+ in assets:
68% expect a “soft landing” for the global economy—highest since Feb 2025.
Cash allocations fell to 3.9%—lowest since Feb 2025, signaling rising risk appetite.
Bearish sentiment on
the U.S. dollar hits a 20-year high—34% bet on further weakening.
Gold inflows continue for the 4th straight month, but demand is softening.
55% reduced exposure to U.S. equities—lowest allocation in five years.
56% believe international stocks will outperform U.S. stocks over the next 5 years.
62% forecast a 25bps Fed rate cut in September 2025.
Top risks cited: trade war, PCE inflation above 3.1%, Fed policy pressure.
Eurozone equities see strongest overweight positioning since January 2005.