Fund Managers Keep 49% Overweight in Stocks as AI Bets Endure Above 5% Treasury Yields
Updated
Updated · CNBC · Sep 16
Fund Managers Keep 49% Overweight in Stocks as AI Bets Endure Above 5% Treasury Yields
3 articles · Updated · CNBC · Sep 16
Summary
A net 49% of global fund managers stayed overweight equities in September, even after the U.S. 10-year Treasury yield broke 5% and oil held above $100 a barrel.
Bank of America's survey of 170 investors managing $470 billion found bullishness had cooled from summer extremes, but stocks were still the most crowded overweight and bond allocations fell to their lowest since May 2022.
Growth expectations are underpinning that stance: double-digit earnings-per-share forecasts hit their highest since August 2021, and 38% of respondents now expect a global economic boom within 12 months.
BlackRock, UBS and other investors said higher yields have not broken the AI-led risk trade, arguing investment in semiconductors, power, cloud and software can still lift profits despite tighter financial conditions.
The main threat remains execution rather than demand, with investors citing AI safety concerns, volatile macro conditions and bottlenecks in chips and power as likely causes of pauses rather than an end to the capex cycle.