Bank of America Survey Shows Record 50% Equity Overweights, Eyes AI Winners
Bank of America’s May survey of 200 fund managers (US$517 billion AUM) shows a net 50% overweight in equities—up from 13% in April—while cash allocations fell to 3.9% from 4.3%, driven by AI spending and Fed rate‐cut expectations. The bank also spotlighted AI winners and is piloting stablecoin payment initiatives.
1. Record Equity Overweights in May
Bank of America’s monthly survey of 200 fund managers controlling US$517 billion in assets showed a net 50% overweight in equities—the highest on record—up from 13% in April. Average cash allocations dropped to 3.9% from 4.3%, reflecting optimism over earnings growth and potential Federal Reserve rate cuts.
2. AI Winners and Losers Spotlighted
Tal Liani, head of global thought leadership, outlined which sectors and companies stand to benefit most from rising AI investment and which may face headwinds, emphasizing technology and cloud infrastructure firms as primary gainers.
3. Exploring Stablecoin Payment Initiatives
The bank is testing stablecoin-based payment programs as card issuers and payment networks explore a US$300 billion market opportunity, aiming to improve transaction speed and reduce processing costs.