Investors are bullish on global stocks, Bank of America survey says

Investors are bullish on global stocks and short on everything else, with their cash levels at the lowest since 2010, according to a Bank of America (BAC) survey of fund managers. That said, 89% said U.S. equities are overvalued.

The benchmark S&P 500 index gained 0.2% Tuesday and has risen 4.2% so far in 2025. MSCI’s (MSCI) ACWI, a global equities measure, rose 0.27% on Tuesday and has advanced 5.5% this year.

Fear of a global recession is at a three-year low, with 52% expecting a soft landing, 36% projecting no landing and just 6% anticipating a hard landing, analysts led by Michael Hartnett wrote in a note. Investors are also more optimistic about China’s economic growth.

The respondents view a possible trade war as only a tail risk, with 58% saying gold will be the best performing-performing asset in that event, followed by the U.S. dollar at 15% and 30-year Treasuries at 9%.

On U.S. interest rates, 77% expect the Federal Reserve to cut at least once this year. Just 1% expect the central bank to hike its benchmark.