Markets hit 'hyper bullish' phase before Trump announces new duties - BofA survey

Global fund managers showed the highest level of optimism since July 2021, with expectations of economic growth among them rising and the share of cash in portfolios falling to a record low 3.2%, a January Bank of America (BofA) survey showed. It was conducted among 96 respondents managing $575 billion in assets before U.S. President Donald Trump threatened European allies to raise duties on their goods until the Greenland situation is resolved, Reuters writes.

According to the survey, BofA's Bull & Bear ("bullish and bearish trend") indicator rose to 9.4, which corresponds to a "hyper bullish" market condition, the agency points out, noting that investors at the time held the lowest amount of protection against a stock market correction since January 2018.

Moreover, 38% of Bank of America survey participants expected acceleration of the global economy, while fears of recession among respondents fell to a two-year low. The base scenario for the market was the option "without landing", notes Bank of America. At the same time, almost half of the respondents spoke about the absence of hedging in case of a sharp fall in stock prices, the agency writes.

The poll was conducted between Jan. 8 and Jan. 15, even before U.S. President Donald Trump threatened a phased increase in duties on goods from European allies until the EU and the United States reach a common agreement over Greenland, Reuters points out.

This article was AI-translated and verified by a human editor