Investors dumped cash and bought stocks in December – BofA

LONDON (Reuters) – Investors turned more bullish in December, buying stocks and reducing cash holdings on expectations the U.S. Federal Reserve has finished raising interest rates and the global economy will avoid a deep recession, BofA’s fund manager survey on Tuesday showed.

Investors are at their most overweight equities relative to cash since January 2022, according to a survey of 219 participants with $611 billion of asssets under management.

They are still overweight cash, but at their least overweight since April 2021, and their most overweight on equities since February 2022, the survey showed.

(Reporting by Alun John; editing by Dhara Ranasinghe)