Bank of America Survey: The percentage of fund managers who believe AI stock valuations have entered a bubble reaches a record high.

On October 14, a recent survey by Bank of America revealed that a record proportion of global fund managers believe that AI-related stocks have entered a bubble after a significant rise this year. In the October survey, about 54% of respondents indicated that tech stock valuations are too high, contrasting sharply with nearly half of them having a negative view on this last month. At the same time, the proportion of those believing that the overall valuation of global stock markets is too high also reached a new high. Asset allocation among fund managers still shows some optimism, with exposure to US stocks rising to an eight-month high, the last time this level was observed was before tariff concerns intensified. Worries about an economic recession have dropped to the lowest level since early 2022. The survey also indicated that the AI bubble is seen as the biggest tail risk in the current market, followed by concerns about inflation rebounding, as well as worries about the weakening of Fed independence and the depreciation of the dollar. (Jin10)