Global investors hit ‘hyper-bull’ as hedging collapses, says BofA survey

MILAN, Jan 20 (Reuters) – Global fund managers are the most bullish since July 2021, January’s Bank of America survey showed on Tuesday, with growth optimism jumping and cash levels sinking to a record low 3.2%.

BofA’s Bull & Bear Indicator surged to a “hyper‑bull” 9.4, as investors held the least equity-correction protection since January 2018, according to the survey of 96 participants with $575 billion in assets under management.

A net 38% expect a stronger economy, while recession fears fell to a two-year low and an economic “no-landing” became the base case for investors, the BoFA report said.

Liquidity was seen as the best since 2021, and nearly half of respondents reported having no hedges against a sharp fall in equity prices.

Geopolitics overtook an AI bubble as the top tail risk, and long gold was the most crowded trade. A long position is essentially a bet that an asset will rise in value.

The survey was carried out between Jan 8 and Jan 15, before U.S. President Donald Trump threatened increasing tariffs on European allies until the United States is allowed to buy Greenland.

(Reporting by Danilo Masoni; editing by Dhara Ranasinghe)