Global Fund Managers Raise Equity Allocation to Record 50% in May, Lowest Cash Holdings at 3.9%

According to Bank of America’s monthly survey released Tuesday, global fund managers raised their equity allocation share in May to a record high, with 50% net overweighting stocks versus 13% in the previous month. The shift was driven by optimism on earnings growth and prospects of Federal Reserve rate cuts.

Meanwhile, average cash holdings fell to 3.9% from 4.3%, marking a fresh low as investors increased risk exposure.