Bank of America's latest monthly survey of 198 institutional fund managers overseeing roughly $540 billion in assets shows equity allocations jumped to 50% overweight from 13% the prior month, the steepest single-month increase since 2001. The survey found 47% of respondents expect a soft landing for the global economy, while 40% predict a no-landing scenario and only 5% foresee a hard landing. Notably, 40% of managers now expect the Federal Reserve to raise rates over the next year, compared with 28% who anticipate cuts, with inflation cited as the top tail risk by 40% of participants. The record equity allocation, the highest since January 2022, was partly driven by expectations that the Strait of Hormuz would reopen by June, a forecast that proved accurate after the U.S.-Iran agreement announced on June 14. The sharp drop in commodity allocation to its lowest since June 2017 also preceded the oil price decline following the Iran deal.
Bank of America CorpSurvey shows equity allocations surge, but Bank of America is the survey conductor, not a subject; the news reflects investor sentiment, not a direct impact on BofA.