Bank of America(US:BAC) Huan Qiu Wang·2025-12-18 08:59Group 1 - Global fund managers are exhibiting unprecedented optimism towards risk, with average cash holdings in portfolios dropping from 3.7% in November to 3.3% in December, marking the lowest level since the survey began in 1999 [1][3] - 42% of surveyed fund managers increased their global stock holdings in December, the highest percentage since 2022, indicating a significant rise in overall optimism among fund managers, reaching the highest point since mid-2021 [3] - Investment firms like Fidelity International and UBS Wealth Management express similar views, predicting high investment returns in the coming year due to a sustained interest rate cut cycle and strong earnings growth expectations supporting the stock market [3] Group 2 - Despite the optimism, market veterans warn that the low cash levels among fund managers could amplify market volatility, making it more susceptible to negative shocks [4] - Concerns about the "AI bubble" remain the largest market risk for investors, although the level of concern has eased, while expectations for rising long-term bond yields introduce new uncertainties [4] - A critical question posed by analysts is whether global stock markets can perform well if U.S. Treasury yields rise above 5%, highlighting the challenging balance between optimistic stock market expectations and upward pressure on bond rates [4]