Global investors hit 'hyper-bull' as hedging collapses, says BofA survey

Core Viewpoint - Global fund managers exhibit the highest level of optimism since July 2021, with a significant increase in growth expectations and a record low in cash levels at 3.2% [1][2] Group 1: Market Sentiment - A net 38% of fund managers anticipate a stronger economy, with recession fears dropping to a two-year low [2] - The Bank of America Bull & Bear Indicator rose to a "hyper-bull" level of 9.4, indicating a strong bullish sentiment among investors [1] - Nearly half of the survey participants reported having no hedges against potential equity price declines, reflecting a high-risk appetite [2] Group 2: Economic Outlook - The prevailing economic scenario among investors is a "no-landing" situation, suggesting confidence in sustained economic growth without a recession [2] - Liquidity conditions are perceived to be the best since 2021, further supporting the positive outlook [2] Group 3: Risks and Trades - Geopolitical issues have surpassed the AI bubble as the primary tail risk identified by fund managers [2] - Long positions in gold have emerged as the most crowded trade, indicating a strong belief in gold's value appreciation [2]