Bank of America survey reveals AI slowdown worries global fund managers

Bank of America: Bank of America is a major global financial institution offering banking, investment banking, wealth management, and asset management services worldwide. Its Global Fund Manager Survey is a widely followed monthly poll that captures institutional investor views on economic outlooks, positioning, and key risks. The latest edition highlights AI capital spending slowdowns as a primary worry for respondents, shaping discussions on potential shifts in market allocations. Market Rotation: Fund managers are showing interest in rotating toward sectors such as healthcare, industrials, and banks amid broader caution on AI buildout sustainability. Risk Perception: Disorderly rises in bond yields have emerged as a leading tail risk for investors, recently surpassing prior concerns tied to AI valuations. Sentiment Trend: Global fund managers remain generally positive on economic growth but express increasing caution regarding the pace and risks of AI-related capital expenditures.