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By Martin Baccardax
Global investors are heading into next year with the lowest levels of cash on the sidelines on record, according to Bank of America’s closely-tracked survey of fund managers, and big bets in place on stocks, commodities, and President Donald Trump’s ”run it hot” economic strategy. In fact, BofA’s Global Fund Manager Survey (FMS) for December indicates the highest level of optimism for the economy in nearly 4½ years, with allocations to stocks and commodities at the highest levels since February of 2022. Fund managers are holding just 3.3% of their assets in cash, a record low, and see overall liquidity in global markets as the third best they have seen in 17 years.
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