Global Fund Managers Remain Bullish on Equities; Semiconductor Stocks Most Crowded Trade

Global fund managers maintain an optimistic outlook on equities, prioritizing economic growth and corporate profits over inflation and interest rate hike risks, according to Bank of America's latest survey. The survey, conducted during the week of June 11, 2026, among institutional investors managing over $500 billion, revealed sustained market optimism. Inflation has supplanted global military conflict and the AI stock bubble as the primary "tail risk." Over half of respondents anticipate the Federal Reserve will maintain rates on June 17, 2026, but expect potential hikes within 12 months. Central banks globally are raising rates, with the Bank of Japan increasing its benchmark to 1% on Tuesday, June 16, 2026, a 31-year high. Equity markets have surged; the S&P 500 is up approximately 15% and the Nasdaq 24% since Q2 2026, both nearing record highs. Despite high valuations, 80% of managers identified global semiconductor stocks as the most crowded trade, a new record for the survey. The Philadelphia Semiconductor Index (SOX) has doubled since late 2025, closing at a record 14,099.62 on Monday, June 15, 2026.