Why fund managers are unshakeably bullish
Professional investors remain optimistic on many fronts.
18th August 2026 13:02
by Dave Baxter from interactive investor
Optimism is in full swing among professional investors this month, with Bank of America registering the “third most bullish” instalment of its widely followed Global Fund Manager Survey since 2022.
Upbeat attitudes have manifested themselves in multiple ways.
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Respondents to the survey had a cash position of 3.5%, down slightly from last month, while global equity allocations surged to their highest level since November 2021.
Meanwhile, the consensus is that there will be no economic “landing” in the next 12 months, no interest rate increase from the US Federal Reserve, no cut in artificial intelligence (AI) capital expenditure and no Democrat sweep at the US mid-term elections.
When it comes to the most crowded trade some 53% pointed to being long on global semiconductor stocks, although this figure is significantly down from July’s 82%.
An AI bubble cropped up as the biggest tail risk, as per 32% of respondents.
Meanwhile, 58% of respondents believe that AI won’t disrupt the labour market until 2028 at the earliest.
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Allocations to US equities have risen to their highest level since December 2024, while allocations to consumer stocks are down.
A net 16% of respondents now view gold as undervalued, marking the highest reading on this front since March 2023.
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