Finance
Investors 'make Europe great again' with big stock allocation, BofA says
Published by Global Banking & Finance Review®
Posted on January 21, 2025
1 min readLast updated: January 27, 2026
Quick Summary
European stocks saw a significant allocation increase in January, with investors bullish on the U.S. dollar and stocks, according to a BofA survey.
Investors Boost European Stock Allocation, BofA Finds
MILAN (Reuters) - European stocks saw their second largest allocation in a quarter of a century in January, as lagging risk assets played catch up, according to a survey of investors from BofA Global Research published on Tuesday.
In a report titled "Make Europe Great Again", BofA said asset allocation remained risk-on, with investors bullish towards the U.S. dollar and stocks, but bearish towards everything else.
Investors were the most underweight on bonds since October 2022, while cash levels ran low at 3.9%, said the survey of 182 participants with $513 billion of asset under management.
A disorderly rise in bond yields was seen as the most bearish development for 2025, BofA said.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
Key Takeaways
- •European stocks had a major allocation increase in January.
- •Investors remain bullish on U.S. dollar and stocks.
- •Bonds are at their most underweight since October 2022.
- •Cash levels are low at 3.9%, according to the survey.
- •A rise in bond yields is a major concern for 2025.
Frequently Asked Questions about Investors 'make Europe great again' with big stock allocation, BofA says
1What is the main topic?
The article discusses the significant allocation to European stocks in January, as reported by a BofA survey.
2Why are investors bullish?
Investors are bullish on the U.S. dollar and stocks, while being bearish on other assets.
3What is the concern for 2025?
A disorderly rise in bond yields is seen as the most bearish development for 2025.
