European Stocks Surge: Second Largest Quarterly Allocation in 25 Years
European stocks witnessed their second highest allocation in 25 years during January, propelled by a catch-up in lagging risk assets, according to a BofA Global Research investor survey released Tuesday.
In its report "Make Europe Great Again," BofA indicates a persistent risk-on sentiment, with investors expressing bullishness towards US dollar (DX=F) and stocks. Conversely, there is a bearish outlook for other asset classes.
The survey, involving 182 participants managing $513 billion in assets, found that investors are at their lowest bond underweight since October 2022, while cash levels have reached a low of 3.9%.
According to BofA, a disorderly rise in bond yields is perceived as the most significant bearish development for 2025.