Key Takeaways
? Global fund manager cash levels hit 3.5%—lowest since 2010? Investors remain bullish, overweight equities, underweight bonds & cash? EuroStoxx, Nasdaq & Hang Seng ranked top indices for 2025? Tech sector sees biggest decline in long positions since 2022? Recession fears drop to a 3-year low

1. Fund Managers Cut Cash to 14-Year Lows
? Global cash allocations fell to 3.5% in February, the lowest level since 2010, per Bank of America’s (BofA) Fund Manager Survey.
? A drop in cash levels signals higher risk appetite, as investors rotate into equities and other riskier assets.
? Market Sentiment Indicator:

February’s overall sentiment rose to 6.4 from 6.1, indicating a bullish outlook despite concerns over valuation.
However, optimism remains below December 2024’s peak levels.

? Track Market Sentiment with FMP – Get real-time company ratings & investor sentiment data.

2. Where Are Investors Allocating Capital?
? Overweight Positions:? Equities (+35%) – Highest exposure, signaling a risk-on mood.? Euro-area stocks – Reached an 8-month high.? Defensive sectors – Utilities, pharmaceuticals, and REITs saw increased interest.
? Underweight Positions:? Bonds (-11%) – Investors prefer equities over fixed income.? Cash holdings – Lowest allocation since 2010.
? Top Equity Indices for 2025 (Investor Preferences):

EuroStoxx (22%)
Nasdaq (18%)
Hang Seng (18%)

? Analyze Equity Trends with FMP – Get historical sector performance insights.

3. Tech Sector Faces a Sell-Off
? Tech saw its largest month-over-month decline in long positions since September 2022.
? Sectors with Lower Exposure:

Tech
Banks
Materials

? What’s Driving the Rotation?

Overvaluation concerns – 89% of fund managers believe US stocks are overvalued.
Sector rotation to bond-sensitive industries as rate expectations shift.

4. Recession Fears at a 3-Year Low
? 82% of fund managers no longer expect a recession.
? This marks a major sentiment shift compared to 2023 when recession fears dominated outlooks.? China’s growth optimism remains, but emerging markets (EMs) haven’t gained traction in fund flows.
? Monitor Economic Growth Trends with FMP – Stay updated on macroeconomic shifts affecting markets.

Final Thoughts: What’s Next for Markets?
? Bullish signals:

Cash levels at record lows → More money flowing into stocks.
Equities remain the top choice among fund managers.
Recession fears fading → Investors betting on economic stability.

? Risks to watch:

US stocks seen as overvalued → Potential for correction.
Sector rotation out of tech → Can AI-driven growth sustain interest?
Rate cut expectations vs. inflation concerns → Will central banks shift policy?

? Track Market & Economic Trends with FMP – Get real-time sector & market insights.