Published by Global Banking & Finance Review®
Posted on February 17, 2026
1 min readLast updated: February 17, 2026
Add as preferred source on GoogleGlobal investors are optimistic despite overinvestment concerns, with strong market sentiment and high earnings growth expectations.
MILAN, Feb 17 - Global investors are increasingly worried that companies are overinvesting, just as market sentiment remains “uber‑bullish” and further asset gains look harder to achieve, Bank of America’s monthly fund manager survey showed on Tuesday.
The poll of 162 managers overseeing $440 billion found cash balances rose to 3.4% from January’s record‑low 3.2%, while investors stayed heavily overweight commodities and equities and deeply underweight bonds.
Macro optimism improved further, with expectations for a global “boom” at the highest since February 2022 and forecasts for earnings growth topping 10%, their strongest since 2021. But a record share of respondents said companies are spending too aggressively, and chief investment officers now favour strengthening balance sheets over increasing capital expenditure.
AI bubbles once again topped the list of investors’ biggest tail risks.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
Overinvestment occurs when a company allocates more resources to a project or asset than is justified by its expected returns, potentially leading to inefficiencies and reduced profitability.
Macro optimism refers to a positive outlook on the overall economic environment, including expectations for growth, employment, and market performance.
Equities represent ownership in a company, typically in the form of stocks. Investors buy equities to gain a share of the company's profits and potential capital appreciation.
Investor sentiment is the overall attitude of investors toward a particular market or asset, often influenced by economic indicators, news, and market trends.
Tail risks are rare but severe events that can lead to significant losses in investment portfolios, often occurring outside of normal market conditions.
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