The big money is moving off the sidelines and into stocks. Bank of America’s July 2026 Global Fund Manager Survey reveals that institutional investors have pushed their US equity allocations to a net 24% overweight position, while cash holdings have dropped to levels that historically signal markets may be getting ahead of themselves.
The survey, released on July 14, polled 181 fund managers overseeing a combined $484 billion in assets.
Cash is out, equities are in
Average cash balances among surveyed managers fell to 3.6% of assets under management. That’s down from 4.1% in prior months and represents the lowest level since February 2026.
BofA has long maintained a “sell signal” threshold at 4.0% cash. When managers collectively drop below that line, it historically suggests markets are approaching frothy territory.
