(Bloomberg). Global fund managers have the largest U.S. stock overweight since August 2013, as their risk appetite exceeds inflation and tapering worries.

Bank of America Corp (NYSE): Survey conducted November 5-11, found that investors now expect higher global earnings and growth. Additionally 51% of respondents expected lower inflation. Survey results showed that fund managers increased their U.S.-equities allocations by 13 percent over the prior month, reaching a 29% overweight.

Clients are “convinced” inflation is transitory and expect the Federal Reserve to remain “well behind-the-curve,” BofA strategists led by Michael Hartnett wrote in a note on Tuesday.

BofA says that U.S. equity and emerging markets will offer the greatest returns for next year. Most investors anticipate staying within the $50k-$75,000 range over the next 12 month. At just over $60,000., the largest current digital token trades.

Since October began, global equities are rallying. They trade near record levels due to a strong earnings season and positive corporate outlooks. This has fueled optimism about companies’ ability to overcome rising costs and supply limitations.

According to the survey, fund managers cut their cash holdings from 4.7% to 4.4% in October while investors bought stocks.

BofA interviewed 345 people with $1.1 trillion in management. 

Additional highlights from the survey include:

• Long tech stocks, Bitcoin, ESG, ESG, and oil were the most-popular trades of November.
• According to 59% of investors surveyed, Bitcoin is a bubble.
• The biggest tail risks include inflation, rate increases at central banks, and China
• Capex is a hot topic with more investors.
• 39% expect Fed rate increases in 2022 from investors, while 37% anticipate one hike, and 13% anticipate none.
• As a result, Eurozone stock allocations fell 1 percentage point compared to October, to net 33% overweight. However, allocation to EM equities rose 3% points to net 2% underweight. While exposure to U.K. stocks plummeted 3 percentagepoints to 15% underweight (the largest drop in U.K. stocks since January 2021).

©2021 Bloomberg L.P.