Bank of America: Market sentiment remains "extremely optimistic," with the AI bubble becoming investors' top concern for tail risk

BlockBeats News, February 17 — A monthly fund manager survey released by Bank of America on Tuesday shows that market sentiment remains “extremely optimistic,” but further asset growth seems increasingly difficult, and global investors are growing more concerned about overinvestment in companies.

According to the survey of 162 fund managers managing $440 billion in assets, cash balances increased from a record low of 3.2% in January to 3.4%. Investors are still heavily overweight in commodities and stocks, while significantly underweight in bonds. Macro optimism has further improved, with the proportion expecting the global economy to experience a “boom” reaching the highest since February 2022, and the proportion expecting earnings growth of over 10% reaching its strongest since 2021.

However, a record proportion of respondents believe corporate spending is too aggressive, and chief investment officers are now more inclined to strengthen balance sheets rather than increase capital expenditures. The AI bubble has once again become the tail risk most concerning to investors.