BOFA: FUND MANAGERS CUT CASH TO 3.9%, MOST BULLISH SINCE FEBRUARY Bank of America’s August Global Fund Manager Survey shows investor sentiment at its highest since February. Cash holdings fell to 3.9% of assets—near historic lows—while equity allocations rose. Economic outlook: 🔸 🔸 Hard landing risk lowest since January: 68% expect a soft landing, 22% no landing, 5% hard landing. Rate-cut optimism strongest since December 2024. Asset allocation shifts: 🔸 Global equities: Net 14% overweight, highest since February. 🔸 Rotation from Europe to emerging markets (37% overweight, most since Feb 2023). 🔸 Favored sectors: utilities, energy, financials. 🔸 91% say U.S. stocks are overvalued. 🔸 Most crowded trade: “long Magnificent 7” (45%). AI sentiment: 🔸 52% see no AI bubble; 55% say AI already boosts productivity. Risks: 🔸 Trade war/recession fears drop to 29%. 🔸 Inflation and “no Fed cuts” fears rise to 27%. Commodities: 🔸 Crypto exposure: 9% of investors, avg. 3.2% of portfolios (0.3% overall). 🔸 Gold: 48% hold it, avg. 4.1% of portfolios (2.2% overall). Contrarian August trades: Long USD, cash, REITs, healthcare; short stocks, emerging markets, banks, utilities.(*Walter Bloomberg)