Bank of America: The likelihood of a hard landing has dropped to the lowest level since January this year, stock allocation is rising

BlockBeats news, on August 11, a monthly fund manager survey by Bank of America revealed that due to optimistic earnings performance and improved global economic sentiment, investors are re-entering the stock market, and holding large U.S. technology stocks has again become the hottest trade. The August survey covered 169 participants managing assets totaling $413 billion.

The likelihood of a hard landing has dropped to the lowest level since January 2025, stock allocation is rising but has not yet reached extreme levels. A net 78% of respondents expect short-term interest rates to decrease in the next 12 months. 29% of respondents believe that the trade war remains the biggest 'tail risk,' while 27% believe that inflation is hindering the Federal Reserve from cutting interest rates.

20% of respondents believe that Federal Reserve Governor Waller is most likely to become the next Federal Reserve Chair, 19% believe it will be White House National Economic Council Director Hassett, and 15% believe it will be former Federal Reserve Governor Warsh.