MILAN, July 14 (Reuters) – Global investor sentiment has climbed to its strongest level since February, with fund managers growing more ‌optimistic on the economic outlook, artificial intelligence-linked spending and the ‌prospect of a dovish Federal Reserve, Bank of America’s latest Global Fund Manager Survey ​showed.

Cash allocations fell to an “uber-low” of 3.6% from 4.1% in June, level that triggered BofA’s contrarian sell signal, while a record share of respondents said they expect a “no landing” for the global economy.

The survey was ‌carried out between July ⁠2 and July 9, after the interim deal to end the U.S.-Iran war and largely before hostilities resumed.

Key ⁠findings from the July survey in more detail:

• Investor sentiment rose to its highest level since February, reflecting optimism about economic growth, AI-related capital ​expenditure and ​expectations for easier monetary policy.

• A ​record 54% of respondents expect ‌a “no landing” scenario for the global economy, while only 2% anticipate a hard landing.

• U.S. equity allocations were raised to the highest overweight position since December 2024.

• Long global semiconductor stocks remained the market’s most crowded trade for a third consecutive month, cited by 82% ‌of investors.

• While some investors trimmed technology ​positions in July, none reported being short ​the sector.

• 61% of ​respondents say hyperscalers are unlikely to cut capital expenditure ‌this year, versus 28% expecting reductions.

• ​AI bubble risks ​rose to the top spot among largest tail risk facing markets, pointed to by 45% of respondents.

• 83% do not expect ​the Fed to ‌raise interest rates before the U.S. midterm elections in November.

• ​Investors cut their end-2026 oil price forecast to $71 a barrel ​from $86 in June.

(Reporting by Danilo Masoni)