Global investors remain strongly optimistic about markets, but are increasingly concerned that companies may be overinvesting, even as further asset gains become harder to achieve, according to Bank of America’s monthly fund manager survey released on Tuesday.

The survey of 162 fund managers, overseeing a combined $440 billion, showed cash holdings rose slightly to 3.4%, up from January’s record-low 3.2%. Despite the rise, investor positioning remained heavily tilted toward risk assets.

Fund managers stayed overweight equities and commodities, while remaining deeply underweight bonds, highlighting continued confidence in growth and market momentum.

Macro optimism strengthened further, with expectations for a global economic “boom” rising to their highest level since February 2022.

At the same time, forecasts for corporate earnings growth climbed above 10%, the strongest earnings outlook since 2021, reinforcing the upbeat tone in global markets.

However, the survey also revealed growing unease about corporate spending.

A record share of respondents said companies are investing too aggressively, and chief investment officers now said they would rather see firms focus on strengthening balance sheets instead of increasing capital expenditure.

Despite bullish sentiment overall, investors again identified an artificial intelligence bubble as the biggest potential “tail risk” for markets.

The findings suggest that while confidence remains high, investors are beginning to question whether corporate investment levels — particularly in high-growth sectors — are becoming excessive.