BofA Survey Reveals Investor Optimism at Peak Levels Since February 2025
Bank of America's October 2025 fund manager survey reveals a surge in investor confidence, with Optimism levels hitting 5.8—the highest since February 2025. The bullish sentiment coincides with fading U.S. recession fears, as 69% of respondents now deem an economic downturn unlikely, down from 42% in April 2025.
Excess liquidity concerns resurface, with 59% of managers reporting market conditions reminiscent of September 2021. However, the AI sector's perceived bubble emerges as a key systemic risk, tempering euphoria among institutional players overseeing $468 billion in assets.