BofA Fund Manager Survey Signals Market Extremes: Cash at Historic Lows, Equities at Peak

Source: CryptoNewsNet Original Title: Bulls beware — BofA Fund Manager Survey flashing contrarian sell signal Original Link: The monthly Global Fund Manager Survey from Bank of America has been widely followed on Wall Street for its ability to suggest sentiment extremes that often precede sizable market reversals.

The latest report shows professional investor sentiment is running at its hottest level in years. Key data points include:

Cash Levels: Fund managers’ cash levels have dropped to just 3.3%, the lowest in the history of the survey—a clear signal that professional investors are leaning hard into risk.

Equity Positioning: The survey, which tracks the views of roughly 200 fund managers overseeing more than $500 billion in assets, shows net 42% of respondents are overweight equities, the highest reading since December 2024.

Commodities: With gold, silver and copper at or near record highs, commodities are also in favor, with a net 18% overweight—their strongest showing since September 2022.

This broad shift into equities and commodities alongside historically low cash reserves suggests investors are positioning for significant risk exposure, a pattern that often precedes market corrections or reversals.