Global Investor Optimism Peaks in January, BofA Survey Revea

Global investor optimism has reached its highest point since July 2021, according to Bank of America’s January fund manager survey. The survey highlights a significant surge in expectations for global economic growth, with the cash holding ratio dropping to a historic low of 3.2%. Protective measures against market corrections are at their lowest since January 2018, and the bull-bear indicator has climbed to 9.4, indicating an “extremely bullish” sentiment.

The survey advises increasing risk hedging and allocations to safe-haven assets amid rising optimism. Geopolitical conflicts have emerged as the top tail risk for the first time since October 2024, followed by concerns over a potential AI bubble.