The share of cash in global investor portfolios has fallen to 3.7%, according to the latest Bank of America (BofA) survey. Fund managers are shifting aggressively into equities and commodities, reassessing their exposure to the technology sector and signaling growing optimism across financial markets.
The November 2025 edition of BofA’s monthly Fund Manager Survey, cited by Reuters, shows that investors have ramped up risk-taking to levels that triggered the bank’s “sell signal.” Analysts warn that overheating markets could face renewed pressure unless the Federal Reserve cuts rates in December.
BofA noted that emerging markets and banking stocks remain the most vulnerable to a potential risk-off rotation in Q4 2025.
Investors Increase Equity and Commodity Allocations
Participants in the survey reported a notable increase in allocations to equities and commodities. Net exposure to global equities jumped to 34%, the highest reading since February. Commodity allocations also reached their strongest level since September 2022.
Optimism about the global economy strengthened as well. For the first time in a year, investors expressed a positive outlook on macroeconomic conditions:
- 53% expect a “soft landing,”
- 63% believe equity markets are currently overvalued — a record high,
- 54% consider “long Magnificent 7” the most crowded trade,
- 45% see an AI-driven bubble as the top market risk,
- 59% view private equity and private credit as the most likely sources of systemic instability.
Reuters reports that the survey included 172 fund managers overseeing a combined $475 billion in assets. The polling was conducted from November 7 to 13.
Background Context
A separate survey by Gallup in July 2025 revealed that 64% of American adults regard cryptoassets as a highly risky investment, with only 14% holding any form of cryptocurrency.
