Risk appetite among professional investors in March has hit its highest level in more than two years, according to Bank of America's closely watched fund manager survey. Sentiment among the 226 market pros who responded to the monthly gauge of finance's top investors showed optimism at its highest level since January 2022. The bank's measure of bullishness takes into account cash levels, allocations to stocks and the outlook on the economy. It showed a reading of 4.
Respondents also see small-caps topping large-cap stocks, value to outperform growth though the preference is still for high quality over low quality. Global growth expectations also are at their highest since January 2022 and "have been been front-run by higher stock prices," Hartnett said. The level of respondents expecting a global recession in the next year hit its lowest level since February 2022.