Global investor sentiment has climbed to its strongest level since February, with fund managers growing more optimistic on ​the economic outlook, artificial intelligence-linked spending and the prospect ‌of a dovish Federal Reserve, Bank of America’s latest Global Fund Manager Survey showed.

Cash allocations fell to an “uber-low” of 3.6 per cent from 4.1 per cent in June, ​level that triggered BofA’s contrarian sell signal, while a ​record share of respondents said they expect a “no landing” ⁠for the global economy.

The survey was carried out between July ​2 and July 9, after the interim deal to end the ​US.-Iran war and largely before hostilities resumed.

Key findings from the July survey in more detail:

  • Investor sentiment rose to its highest level since February, reflecting optimism about ​economic growth, AI-related capital expenditure and expectations for easier monetary ​policy.
  • A record 54 per cent of respondents expect a “no landing” scenario for the global ‌economy, ⁠while only 2 per cent anticipate a hard landing.
  • US. equity allocations were raised to the highest overweight position since December 2024.
  • Long global semiconductor stocks remained the market’s most crowded trade for a third consecutive ​month, cited by ​82 per cent of ⁠investors.
  • While some investors trimmed technology positions in July, none reported being short the sector.
  • 61 per cent of respondents ​say hyperscalers are unlikely to cut capital expenditure ​this year, ⁠versus 28 per cent expecting reductions.
  • AI bubble risks rose to the top spot among largest tail risk facing markets, pointed to by 45 per cent of ⁠respondents.
  • 83 per cent ​do not expect the Fed to ​raise interest rates before the US. midterm elections in November.
  • Investors cut their end-2026 oil ​price forecast to $71 a barrel from $86 in June.