The October 2026 Global Fund Manager Survey by Bank of America reveals that 37% of fund managers are overweight in technology stocks, up from 30% in September. This represents the highest level of tech exposure since August 2020.
The survey, conducted between October 2 and October 8, 2026, involved 161 participants managing a combined $453 billion in assets. Pharmaceuticals and industrials followed tech with overweight positions of 23% and 22%, respectively.
Conversely, consumer discretionary stocks reached a net 34% underweight, marking the most bearish sentiment since July 2008. Meanwhile, 45% of respondents identified global semiconductor stocks as the most crowded trade.
Regarding artificial intelligence, 45% of managers expect an AI bubble to form in 2027, while 42% disagree. Additionally, 23% of participants cited an AI bubble as a notable tail risk for the market.
Cash holdings among managers are currently at 3.9%, remaining below the 4% threshold typically viewed as a sell signal. Furthermore, 60% of respondents anticipate double-digit earnings growth over the next year.
