Fund managers most bullish since February - Bank of America

(Sharecast News) - Fund managers were the most bullish in September they have been since February, according to the latest fund manager survey from Bank of America released on Tuesday. The survey highlighted low cash levels - which remained at 3.9% for the third month in a row - and equity longs at seven-month highs amid the biggest jump in global growth expectations since October 2024.

The bank said fading tariff worries and expectations of easing outweighed concerns over weak US jobs.

Bank of America said bulls are "feasting" on "trade war ending, rate cuts starting, bond yields to rise".

Asked about the most likely outcome for the global economy, 67% of respondents said they expect a soft landing, while 18% expect no landing. BofA said 10% expect a hard landing.

According to the survey, September saw the biggest monthly rotation out of UK equities - from net 2% underweight to 20% - since April 2004.

BofA said allocation to UK stocks is now the lowest since March 2024.