A widely watched Bank of America survey shows high confidence in the economic and market outlook with investors dumping cash to take part.
But the firm says the shift in sentiment should raise eyebrows of contrarians looking for signs of extreme optimism to mark a market turning point.
“The only reason to be bearish is … there is no reason to be bearish,” Bank of America chief investment strategist Michael Hartnett told clients.
A majority of investors finally agree the V-shaped recovery is at play, according to the Bank of America Global Fund Manager Survey, one of the longest-running and widely followed polls of Wall Street investors. Plus, a record percentage of money managers believe that global growth is at an all-time high.
Bank of America surveyed 225 mutual fund, hedge fund and pension fund managers with $645 billion under management. The survey has been around since 1998.