Global investors remained bullish in June, with cash allocations holding at three-year lows and equity allocations elevated, according to Bank of America's monthly fund manager survey published on Tuesday.
Underpinning the optimism, 73% of those surveyed said they saw no recession in the U.S. in the next 18 months but 84% said they expected the Federal Reserve to cut rates at some point in 2024, according to a survey of 206 investors with $604 billion assets under management.
Investors have also increased their holdings of euro zone stocks, with allocations rising 12 percentage points compared to May's survey, to net 30% overweight, the highest since January 2022.
The survey was carried out from June 7-13 June and so partially captured last week's sell-off in European, and particularly French assets, due to political uncertainty in the bloc's second largest economy.
Investors pared back their holdings of Japanese stocks, which have been very popular for the past year, with allocations falling 16 percentage points month-on-month to the lowest overweight since July 2023.
