Bank of America survey: Global investors’ risk appetite is heating up rapidly, and AI capital expenditures have not yet deterred bulls.

The latest Bank of America (BofA) Global Fund Manager Survey reveals that global investors’ risk appetite is surging rapidly. As US stocks edge closer to record highs, fund managers’ allocation to equities has climbed to a five-year peak, while cash holdings have fallen to 3.5% — a sign the market has largely recovered from earlier jitters over growth slowdown and an AI bubble. BofA strategist Michael Hartnett pointed out that a record 56% of surveyed fund managers expect no significant “landing-style” slowdown in the global economy. In other words, the market’s dominant positioning is betting on economic resilience, sustained corporate earnings expansion, and risk assets will continue to get liquidity support. Notably, the survey shows AI capital expenditures have not yet become a top concern for investors. Even as tech giants keep boosting budgets for data centers, GPUs, servers and power infrastructure, talk of “overheated AI spending” is on the rise — but the BofA survey finds fund managers are currently not overly worried about growth, interest rate hikes, AI capital expenditures or US political risks.