Bank of America Poll Shows Record Number of Investors Believe US Stocks Are Overvalued, Despite Bullish Sentiment.

A record 91% of fund managers in a Bank of America poll believe US stocks are overvalued, the highest proportion since 2001. Despite this, overall sentiment is the most bullish in six months, with a net 16% still underweight the US. Investor allocation to global equities has climbed to the highest since February, and a majority see a soft landing as the most likely outcome for the global economy in the next 12 months.

In a recent Bank of America poll, a record 91% of fund managers expressed that US stocks are overvalued, the highest proportion since 2001. Despite this, overall sentiment remains the most bullish in six months, with a net 16% still underweight the US market [1]. Investor allocation to global equities has climbed to the highest since February, and a majority see a soft landing as the most likely outcome for the global economy in the next 12 months.

The current market environment is characterized by significant volatility. The direction of inflation and interest rates continues to influence market movements. While there is greater clarity around interest rates, inflation remains a concern. Global growth is projected to be slightly below trend, with US growth remaining robust despite higher interest rates in the eurozone and UK, and China's disappointing performance [2].

The mixed sentiments and market volatility have led to cautious optimism among investors. The consensus remains for a soft landing for the global economy, with most major economies near or at peak interest rates. This suggests potential for stock markets to make progress, but investors should be prepared for ongoing volatility. The current environment requires careful consideration and strategic planning.

References:
[1] Bank of America, [url](https://www.bankofamerica.com/newsroom/press-release/record-91-percent-of-fund-managers-believe-us-stocks-are-overvalued)
[2] Evelyn, [url](https://www.evelyn.com/insights-and-events/insights/five-themes-for-the-rest-of-2023/?utm_medium=evelyn_partners_for_advisers&utm_source=linkedin)