A survey of 209 fund managers that oversee $539 billion in assets found investors were taking above average risk for the first time in four years, Bank of America said in a statement.
Cash reserves fell from 4 percent in December to 3.4 percent in January, indicating more funds are headed into stock markets. Cash is at the lowest level since before the recession, which began in December 2007.
"This survey is one of the more bullish we have seen and suggests that investors buy into the idea that this recovery has legs," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.
"There are fewer worries of a double-dip recession," he said.
The survey found 40 percent of respondents indicated they prefer corporations use cash for capital spending, a switch from a recent trend in which respondents preferred corporations play it safe and use cash to improve their bottom line. A net 15 percent indicated they would prefer corporations take on more debt, which suggests growth is imminent.
Copyright 2010 by United Press International.
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