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      Bank of America Survey Reveals Declining Confidence in Risk Assets

      Bank of America's September Global Fund Manager Survey indicates a decrease in enthusiasm for global equities among institutional investors. The survey, conducted from September 4 to 10, revealed that net optimism for stocks fell to 49% overweight, down from 56% in August. This shift comes as rising bond yields have emerged as a primary concern for fund managers, overtaking previous worries related to the artificial intelligence sector.

      The survey included responses from 170 fund managers managing a total of $470 billion in assets. Notably, 33% of respondents identified a disorderly rise in bond yields as the biggest risk, reflecting a significant change in sentiment. The net underweight position in bonds reached 48%, the highest level since May 2022, indicating a cautious approach towards fixed-income investments even as yields rise.

      Cash allocations in portfolios increased to 3.9%, approaching a historical threshold that could signal a contrarian buy for equities if it surpasses 5%. Additionally, political uncertainty surrounding the upcoming U.S. midterm elections adds another layer of complexity to market dynamics, with 44% of respondents anticipating a split Congress. Despite these concerns, expectations for earnings growth remain generally positive, providing some support for equity positions.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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