Investors are their most optimistic in months, according to new data from Bank of America.
BofA’s latest Global Fund Manager Survey shows that investors are their most bullish since February this month, thanks to a big jump in global growth optimism.
Allocations to equities have hit a seven-month high, as fears of a “recessionary trade war” faded in recent weeks.
BofA’s team, led by investment strategist Michael Hartnett, reports the biggest jump in growth expectations since October 2024, with two-thirds of investors now expecting a soft landing (in which inflation falls without causing a recession).
“Bulls [are] feasting on trade war ending, rate cuts starting,” they say.
However, September has also seen the biggest monthly rotation out of UK equities since April 2004.
Bank of America reports that this selloff means allocations to UK stocks is now the lowest since March 2024.
There had been a surge of money into UK stocks earlier this year, partly due to relief that Britain agreed an early trade deal with Donald Trump.
