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1. Investors keep piling into European stocks.

A Bank of America fund manager survey out this week sent a clear message: over the past month, investors have only added to their euro zone equity allocations.

The bullishness among investors extends to their expectations for returns, with almost no respondents to BofA’s European survey seeing material downside in the region, while 59% anticipate an improvement.

The upbeat mood stems from optimism that economic growth will accelerate as German stimulus kicks in.

Macro-economic momentum remains better in Europe and in China, with both boosted by major support measures, while the prospects for this in the US look much tighter.

Meanwhile, the divergence in monetary policy favors Europe, with lower rates and a more accommodative central bank.

2. Nearly 50% of fund managers say Gold is overvalued.

3. Base metals falter as US-China Trade optimism peters out.

Interestingly, industrial metals and growth-sensitive commodities are diverging from the significant bounce in equity risk, with hard assets reflecting the lack of long-term trade resolution and the lingering potential for slower economic growth.

4. India overtakes Japan to emerge as most favored Asian stock market, BofA survey says.

India has emerged as Asia’s most favored stock market among global fund managers, edging out Japan in Bank of America Securities’ latest survey. With 42% of respondents overweight on India—compared to 39% for Japan and just 6% for China—the South Asian giant is gaining momentum as a beneficiary of global supply chain shifts and rising domestic demand.

India isn’t just weathering global headwinds—it’s capitalizing on them.

First-quarter earnings have also bolstered optimism and Bernstein strategist, Venugopal Garre, sees Indian stocks climbing further this year.

5. More gains in the coming weeks?

Fund Managers have missed out on the recent stock surge after recently reducing their equity exposure to the lowest levels in 2 years.

With the broader US stock indexes already erasing their declines of the year, the traders and other speculative buyers who missed out will be on the hunt for pockets of opportunity to play catch-up before the next bout of tariff-induced turbulence strikes again.

“There will be significant buying from systematic traders and discretionary investors who haven’t captured as much of this rally as they would have liked. Now, they’re under-positioned and have a lot money to use to buy some of the laggards.”

“With fund managers slashing their exposure to equities in recent weeks, the run-up in the S&P 500 has cleared the path for many of them to return as buyers. Traders closing out their bearish wagers in the Russell 2000 Index will also likely spur more gains for small caps in the coming weeks.”

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