Investors are now more optimistic about global growth and profit expectations after expressing pessimism last month, according to the results of Bank of America's November Global Fund Manager Survey.
Of the 388 fund managers surveyed, which oversee a total of $1.2 trillion in assets, expectations of global growth improved to a net 3% in November, up from -6% in October, but down from the peak of 91% in March.
Expectations that profits will improve rose to a net 6% among survey respondents, up 21 percentage points from October, but down from the 89% peak in March.
According to a report on the survey results, 65% of fund managers expect a global economic boom over the next 12 months, while 61% say inflation is "transitory." Meanwhile, only 6% of investors expect a recession.
Investors are also more willing to take on additional risk this month, with a net 5% of fund managers taking "higher-than-normal" risk in November, up 10 percentage points from October, but down from a high of 25% in February.
Inflation tops the list of biggest tails risks for fund managers, at 33%, followed by central bank rate hikes at 22% and China at 20%.
Cash levels slumped month-over-month to 4.4% in November, from 4.7% in October.
Asset allocation to U.S. equities increased 13 percentage points month-over-month to a net 29% overweight. The allocation is still down from a peak of net 62% overweight in April.
