According to the Bank of America's latest fund manager survey, global investors who have recently bought large amounts of stocks should consider reducing their holdings appropriately. Bank of America strategists said that the optimism of asset allocators has risen to a very high level, which is generally seen as a warning sign for the market. According to the survey, the cash holding ratio fell from 4.1% of assets last month to a “very low level” of 3.6%, while the US stock allocation ratio rose to the highest level since December 2024, with a net overallocation of 24%. The team led by Michael Harnett wrote in the report, “The Bank of America's bullish indicators rose to an extremely bullish level of 9.4, which means investors should reduce the allocation of stocks and high-beta assets.” The value range for this indicator is 1 to 10. The report said, “As market positions are already very optimistic, the room for risk assets to rise further this summer may be limited.”

According to the Bank of America's latest fund manager survey, global investors who have recently bought large amounts of stocks should consider reducing their holdings appropriately. Bank of America strategists said that the optimism of asset allocators has risen to a very high level, which is generally seen as a warning sign for the market. According to the survey, the cash holding ratio fell from 4.1% of assets last month to a “very low level” of 3.6%, while the US stock allocation ratio rose to the highest level since December 2024, with a net overallocation of 24%. The team led by Michael Harnett wrote in the report, “The Bank of America's bullish indicators rose to an extremely bullish level of 9.4, which means investors should reduce the allocation of stocks and high-beta assets.” The value range for this indicator is 1 to 10. The report said, “As market positions are already very optimistic, the room for risk assets to rise further this summer may be limited.”