Bank of America: The possibility of a hard landing drops to the lowest level since January this year

According to a report by Golden Finance, the monthly fund manager survey of Bank of America shows that investors have returned to the stock market due to optimistic profit performance and improved global economic sentiment, with holding large US tech stocks once again becoming the most popular trade. The August survey covered 169 participants who managed assets worth $413 billion. The possibility of a hard landing has dropped to its lowest level since January 2025, and stock allocation is on the rise, but has not yet reached extreme levels. 78% of respondents expect short-term interest rates to decrease in the next 12 months. 29% of respondents believe that the trade war remains the biggest tail risk, and 27% believe that inflation is hindering the Federal Reserve's interest rate cuts.