Bank of America's Michael Hartnett said that global investors have further increased their stock holdings, and the stock allocation has risen to the highest level in the past five years, leaving little room for pessimists in the market. A team of Bank of America strategists led by Hartnett wrote in the report that the Bank of America's latest industry survey showed that 56% of net fund managers overallocated stocks, the highest proportion since November 2021. The cash allocation fell to an “extremely low” 3.5%. According to the report, the market consensus is that the economy will not clearly “land,” the Federal Reserve will not raise interest rates, AI capital spending will not be cut, and the Democratic Party will not win big in the midterm elections. They believe that current positions still mean that investors should retreat or rotate within risky assets rather than increase their positions further. The report reaffirms the recent view of a shift to a more defensive market sector. According to the August survey, investors do not expect the Federal Reserve to raise interest rates until the November midterm elections, and the Democratic Party's election performance will not be enough to weaken the strong momentum of the stock market. The general opinion of fund managers is that the economy will not deteriorate significantly, and that companies that invest heavily in artificial intelligence infrastructure will continue to maintain spending.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.