Bank of America (BofA) research showed a record return of investors to risk assets in the last 20 years #AltcoinSeasonLoading
According to a July survey by BofA conducted among 175 institutional investors with total assets of about $434 billion, fund managers are returning to risk assets amid rising optimism about global economic growth. According to the study, the share of investors holding higher-risk assets in their portfolios has increased the most in the last 20 years since BofA began conducting monthly surveys.
According to the survey results:
- about 60% of respondents no longer expect a recession in the U.S. over the next year, marking a complete shift in sentiment compared to early 2025;
- optimism about corporate profits has increased the most since 2020;
- the S&P 500 is reaching historical highs, and Nasdaq 100 futures have risen by 0.6%.
Among the current risks for investors identified in the study were the following:
- trade wars that could trigger a global recession;
- high inflation that will prevent the Federal Reserve (Fed) from lowering interest rates;
- a sharp weakening of the U.S. dollar.