Bank of America survey shows institutional investors increased equity exposure by the largest margin since 2001 amid soft-landing bets.
Institutional fund managers raised equity allocations to 50% overweight in October, up from 13% in September, marking the steepest monthly increase since 2001. The shift reflects growing confidence in a soft landing for the global economy, with 47% of respondents expecting inflation to cool without significant economic damage.
The survey, covering 198 managers overseeing $540 billion in assets, showed a decline in soft-landing expectations from 68% in August 2025. Meanwhile, 40% now predict a “no landing” scenario, where growth remains resilient despite elevated interest rates, up from 22% previously.
Sentiment has shifted sharply from a year ago, when recession fears dominated. The latest data suggests a more optimistic outlook among professional investors, though risks remain as central bank policies evolve.