In September 2025, global fund managers demonstrated the highest level of optimism regarding the economy and stock market since February of this year. These results were revealed by a Bank of America survey of 165 asset managers managing $426 billion, conducted from September 5 to 11.
This is reported by Finway
Increase in the Optimism Index and Investment Trends in Technology
The fund managers’ sentiment index rose from 4.5 points in August to 5.4 in September, marking the highest level since the beginning of 2025. The share of investors who preferred (overweight) global equities increased to 28%, which is 14 percentage points higher than the previous month.
Particular emphasis in investors’ portfolios has been placed on the technology sector. The proportion of investors favoring technology stocks reached 20%, the highest level since July 2024. At the same time, 58% of respondents believe that global equity markets are overvalued — a record figure for BofA’s research.
Main Risks and Changes in Fund Managers’ Portfolios
Despite the historically high level of concern regarding market overvaluation, respondents did not categorize this issue as a primary risk. Fund managers identified the potential for a second wave of inflation as the main challenge for the market — 26% of respondents ranked this risk first. The second concern was the threat to the independence of central banks and the weakening of the US dollar (24%). In contrast, the risk of trade wars, which worried 29% of participants in August, now concerns only 12% in September.
“A record 58% of investors [in the fund managers’ survey] consider global equity markets overvalued, slightly up from 57% in August. Meanwhile, only 10% of investors believe bond markets are overvalued.”
The survey also recorded that the cash share in fund managers’ portfolios decreased to 3.9% — the lowest level in the past year. This indicates an increased risk appetite among investors. The most “overheated” trades identified by respondents included long positions in the “Magnificent Seven” and gold.
The majority of survey participants expect a “soft landing” for the US economy, with the probability of recession assessed as low. 47% of respondents predict at least four cuts to the Federal Reserve’s key interest rate over the next 12 months.
Earlier, in May, a similar BofA survey recorded the highest level of pessimism regarding the dollar in 19 years, and in July — a record return of investors to risk assets, particularly in the technology sector and US and EU stocks, amid rising overall optimism about global economic growth.