Fund Manager Survey: Bullish Sentiment on US Stocks Surges, Allocation Preferences Shift Significantly

According to the latest global fund manager survey from Bank of America, professional investors are growing increasingly optimistic about US equities. The data indicates that bullish sentiment toward US stocks has reached its highest level since December 2024, reflecting strong institutional confidence in the market's outlook.

Allocation Weight Hits Five-Year High

A key finding from the survey reveals that a net 24% of responding fund managers believe US stocks will outperform other major global markets in the coming period. This optimism has translated into concrete action—current allocation to US equities now ranks as the third highest in the past five years, signaling sustained capital concentration toward American markets.

UK Stocks Face Confidence Crisis

In stark contrast, investor interest in UK equities is cooling rapidly. The survey shows fund manager confidence in London-listed stocks has fallen to its lowest point since August 2020, with allocation levels being correspondingly reduced.

This sentiment shift is reflected in market performance: year-to-date, the UK's FTSE 100 has gained approximately 5.7%, while the US S&P 500 has risen more than 10% over the same period. This pronounced performance gap is reinforcing the trend of capital moving from the UK to the US.

Logic Behind Market Divergence

Analysts suggest this allocation shift reflects global fund managers' reassessment of economic growth prospects and monetary policy environments. The relative resilience of the US economy, steady corporate earnings, and the continued leadership of growth sectors like technology are making US stocks a preferred haven amid current uncertainties.

Meanwhile, the UK market faces multiple challenges, including sluggish economic growth, inflationary pressures, and structural adjustments following Brexit. These factors collectively dampen investor enthusiasm for UK assets.

  • Key Finding One: Bullish sentiment on US stocks hits nearly two-year peak
  • Key Finding Two: Net 24% of fund managers expect US equities to outperform globally
  • Key Finding Three: Confidence in UK stocks drops to four-year low
  • Key Finding Four: Significant performance gap between US and UK markets this year

This survey provides an important window into current global capital flows. As market conditions evolve, fund managers' allocation adjustments may continue to influence valuations and liquidity in relevant markets.