Investors are going “all in” on US technology stocks as they turn the most optimistic about global growth in two years, according to a survey by Bank of America Corp.
Allocation to tech is now at the highest since August 2020, the global survey of fund managers showed. Exposure to US equities more broadly has also risen, while easing macro risks prompted investors to trim cash levels by 55 basis points from January.
Previous such declines in cash levels were followed by stock market gains of about 4% in the following three months, strategist Michael Hartnett wrote in a note.
Technology companies, which generally benefit from lower interest rates, have led US stocks to a record high this year, with the Nasdaq 100 heading for a fourth straight month of gains. But the rally has left the benchmark S&P 500 in so-called overbought territory, which some market participants consider a precursor for declines.
Hartnett said in the note dated Feb. 13 that overly bullish investor positioning was increasingly becoming a contrarian headwind for risk assets.
The rally could be given more fuel on Tuesday when the US is due to publish monthly figures on consumer prices. The data are expected to show more disinflation in services following recent declines in goods prices, which will bolster the case for rate cuts by the central bank, according to Bloomberg Economics.
A majority of respondents to BofA’s survey also expect inflation to decline, while only 7% predict higher pricing pressure. About 65% of investors forecast a soft economic landing, while the probability of a hard landing faded to 11%. About 41% of participants said they expect large-cap growth stocks to drive equity markets, while 18% indicated gains would be fueled by small-cap growth stocks.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
