The Bank of America fund manager survey in August recorded that investors are increasingly returning to the stock market due to positive earnings expectations and improved economic sentiment.

The survey involving 169 fund managers managing $413 billion indicates a focus on the 'Big Seven' group of leading tech stocks as a priority, while forecasting short-term interest rates to decrease in the next 12 months.

MAIN CONTENT

  • 45% of fund managers chose 'Long the Big Seven' as a popular investment strategy.

  • Global investor sentiment is at its highest since February 2025, with only 5% forecasting a hard economic landing.

  • 78% expect short-term interest rates to decrease in the coming year, with the main risks being trade wars and inflation.

What did the Bank of America August survey record about current investment trends?

The survey with 169 fund managers from Bank of America, managing a total of $413 billion in assets, reflects a positive trend in returning to the stock market.

Among them, the 'Long the Big Seven' strategy – long-term investment in the group of 7 major tech stocks led by Nvidia and Microsoft is rated as the top choice by 45% of fund managers. The optimism is based on improved earnings results and positive economic sentiment.

Global investor sentiment has reached its highest level since February 2025, indicating expectations for a sustainable recovery in the short term.

What are the notable trends in asset allocation and interest rate forecasts?

The proportion of stocks in the portfolios of funds is at 14%, the highest level this year but still lower than 49% in December of last year.

This reflects a more cautious approach, yet still maintains a gradual upward trend in capital allocation to the equity market. The forecasts of 78% of survey participants suggest that short-term interest rates are likely to decrease in the next 12 months, facilitating the stock market.

However, major risks remain, including trade wars and inflationary pressures, which could impact recovery prospects.

'The focus on large tech stocks reflects confidence in the profitability and long-term growth potential of this sector even amid significant economic volatility.'

Investment strategist, Bank of America report, August 2025

How did the global stock market react to this survey?

Global investor sentiment is at its most positive since February 2025, with only 5% of organizations forecasting a hard landing for the economy.

The strengthening of this confidence contributes to an influx of capital into the stock market, although the proportion of stocks has not fully recovered compared to previous times.

This indicates that while investors remain cautious, the long-term trend towards sustainable growth is being solidified.

What risks are fund managers paying attention to in the near future?

Trade wars and inflation have been identified as the main risk factors that could pressure the financial markets.

According to the survey, more than three-quarters of respondents (78%) expect short-term interest rates to decrease, but if these risks resurface strongly, the likelihood of increased financial costs and market volatility will rise.

Considering and managing these risks remains a top priority for professional investors to protect portfolios from significant fluctuations.

Frequently Asked Questions

How important is the Bank of America fund manager survey?

The survey reflects the sentiment and asset allocation trends of major fund managers, providing important indicators of market trends and economic expectations.

What stocks are included in the 'Long the Big Seven' strategy?

A strategy focused on the 7 major tech stocks like Nvidia and Microsoft is considered the top priority choice today.

What do fund managers forecast for future interest rates?

78% of survey participants expect short-term interest rates to decrease in the next 12 months, supporting the stock market.

What is the biggest risk identified by fund managers?

Trade wars and inflation are seen as the main risks that could negatively affect market prospects.

What is the current sentiment of investors?

Positive sentiment has reached its highest level since February 2025, with a majority expecting the economy to avoid a hard landing.

Source: https://tintucbitcoin.com/bofa-7-cong-ty-cong-nghe-dan-dau/

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