Bank of America Survey Shows Investors Still Favor Global Equities Despite Higher Yields

According to CNBC, Bank of America's latest Global Fund Manager Survey found that many investors remained optimistic about growth and earnings even as oil prices and bond yields kept markets volatile. A net 49% of money managers were overweight global equities in September, while allocation to bonds fell to its lowest level since May 2022. The survey polled 170 investors overseeing a combined $470 billion in assets and showed expectations for double-digit earnings-per-share growth over the next 12 months at their highest since August 2021. It also found that 38% of respondents expected a global economic boom in the coming year, and most still anticipated heavy spending on AI. BlackRock Investment Institute strategists said rising bond yields had not changed their pro-risk stance, though they were raising the hurdle for returns. UBS Global Wealth Management's Mark Haefele said the key issue for investors is whether AI demand and monetization will keep expanding, while Federated Hermes' Tej Sthankiya said the recent AI sell-off created buying opportunities for longer-term investors.