Pro investors pump cash into stocks and commodities at record rate
Experts are clearly betting on a decent outcome for the global economy, and a key indicator is yet to scream ‘sell’. Graeme Evans runs through this survey’s findings.
16th December 2025 15:33
by Graeme Evans from interactive investor
Cash levels have slumped to a record low after the most bullish survey of professional investors in more than three years today showed a surge towards cyclical risk assets.
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The “run-it-hot” optimism of fund managers in this month’s closely watched Bank of America report was seen in the highest allocation to stocks and commodities since February 2022.
Long positions on Magnificent Seven stocks represented the most crowded traded for the second month in a row as investors lifted tech allocations to the highest since July 2024.
The survey’s overall bullish stance reflects a stronger profit outlook and expectations for a soft or no landing in the global economy, compared with a record low 3% braced for a hard landing.
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As a result, cash levels have slumped to 3.3% of assets under management from 3.7% the previous month and more than 6% in October 2022.
There have been nine previous occasions since 1998 when cash levels have been below 3.6%, with global stocks down by 2% on average in the following month. This included February’s 5% decline, when the cash level stood at 3.5%.
The bank said December’s bullish positioning left its Bull & Bear Indicator at 7.9, which is just below the eight or above signalling a Sell. Its Cash Rule is already flashing a warning sign in relation to global equities by standing at below 4%.
The research between December 5 and 11, which involved 238 participants with $364 billion (£271.4 billion) of assets under management, showed little appetite for UK stocks.
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Investors are net 24% Underweight UK equities, which is only slightly better than 29% the previous month. Allocations have been Overweight only twice since August 2021.
Bonds, consumer staples and energy are also out of favour, with investors the most overweight on commodities since September 2022 alongside support for banks and healthcare.
December’s survey showed investor concerns around an artificial intelligence (AI) bubble recede slightly, although at 37% of respondents it remains the number one biggest “tail risk” followed by a disorderly rise in bond yields. Private credit ranked fourth, compared with no mention last month.
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