Global institutional investors haven’t been this optimistic in five months. Bank of America’s July 2026 Global Fund Manager Survey, published on July 14, shows sentiment surging to its highest level since February, with cash reserves dropping to record lows and a majority of fund managers betting the global economy can keep growing without tipping into recession.
The numbers behind the optimism
The survey, which collected responses from institutional investors between July 2 and July 9, paints a picture of aggressive risk-taking across the board.
Cash allocations plunged to 3.6%, down from 4.1% in June. BofA described this as “uber-low,” which is about as alarmed as a Wall Street research note gets. That drop was steep enough to activate the bank’s contrarian sell signal, a mechanical indicator that historically suggests equities are due for a pullback.
A record 54% of respondents now expect a “no landing” scenario for the global economy, meaning they believe growth will continue without a recession or meaningful slowdown. Only 2% of fund managers foresee a hard landing.
