Fund Managers Lift Equity Exposure to 50% Overweight in BofA Poll
Updated
Updated · Bloomberg · May 19
Fund Managers Lift Equity Exposure to 50% Overweight in BofA Poll
5 articles · Updated · Bloomberg · May 19
A net 50% of asset allocators were overweight stocks in May, up from 13% in April in the biggest monthly jump on record in Bank of America’s global fund manager survey.
The shift reflected managers chasing the strong equity rally, pushing overall positioning to its most bullish level since January 2022.
BofA strategists led by Michael Hartnett said that stance is now close to triggering the bank’s contrarian sell signal, suggesting optimism is nearing an extreme.
As fund managers chase the rally, are they ignoring warnings of a massive AI-fueled 'bull trap'?
With trillions flowing into AI, is this a new economic paradigm or just history's most expensive market bubble?