In September 2025, global fund managers demonstrated the highest level of optimism regarding the global economy and stock market since February of this year. This data was released following a survey by Bank of America, which included 165 asset managers with a total portfolio of $426 billion during the period from September 5 to 11.
This is reported by Business • Media
Increased Interest in Technology Sector Stocks
The sentiment index among fund managers rose from 4.5 in August to 5.4 in September, marking the highest level since the beginning of the year. The share of those preferring global stocks jumped to 28%, which is 14 percentage points higher than last month. Investors were particularly active in the technology sector: the net share of fund managers favoring stocks reached 28%, and 20% of respondents indicated a preference for technology securities — the highest level since July 2024.
At the same time, 58% of survey participants consider global stock markets overvalued — a record figure for the study.
“A record 58% of investors [in the fund managers’ survey] believe that global stock markets are overvalued, slightly up from 57% in August. Meanwhile, only 10% of investors consider bond markets overvalued.”
Main Risks for Investors: Inflation and Dollar Weakness
Despite a significant number of specialists concerned about market overvaluation, the main risks for fund managers remain inflation (26%) and potential weakness of the US dollar along with the loss of central banks’ independence (24%). The risks of trade wars, which troubled 29% of respondents in August, now concern only 12% of participants.
The study also showed that the cash share in investors’ portfolios has decreased to an annual low of 3.9%, indicating an increased appetite for risk. Investors identified the most overheated trades as long positions in the “Magnificent Seven” and gold. Most survey participants predict a “soft landing” for the US economy, and a recession seems unlikely. Additionally, 47% of respondents expect at least four rate cuts from the Federal Reserve over the next year.
It is worth noting that in May of this year, pessimism regarding the dollar reached its highest level in 19 years, while in July there was a record return of investors to risk assets, accompanied by increased interest in the technology sector, US and EU stocks amid rising expectations for global economic growth.
Growth expectations rating, cash levels, and capital allocation. Source: BofA.