Investors Go All-In On Stocks And That Might Be A Sell Signal

Risk appetite is surging among global fund managers, with equity allocations hitting eight-month highs and cash levels dipping dangerously low. Still, optimism is colliding with mounting fears over private credit blow-ups and a potential AI stock bubble. The latest Bank of America Global Fund Manager Survey for October reveals a sharp uptick in bullish sentiment, reaching its highest point since February. The net equity overweight jumped to 32%, the most since early 2025, while the average cash level slipped to 3.8%, below a threshold that triggered a contrarian sell signal.