Bank of America’s monthly survey shows institutional investors are heavily exposed to equities despite internal risk warnings.
Bank of America’s latest investor survey reveals 56% of fund managers are overweight stocks, ignoring multiple sell signals from the bank’s risk models. The proportion of cash in portfolios has dropped to levels historically associated with market vulnerability, raising concerns about potential downside exposure.
The survey, conducted monthly among institutional clients, tracks asset allocation trends and sentiment. Previous instances of low cash levels have often preceded market corrections, though managers appear undeterred by current macroeconomic uncertainties.
No immediate market reaction was reported, but the disconnect between risk indicators and positioning may signal growing complacency among investors.