Bank of America's February global fund manager survey reveals record-high concerns about corporate overinvestment in capital expenditure, with 35% of chief investment officers urging companies to improve balance sheets. The survey of 190 panellists managing $512 billion in assets shows a sharp shift in priorities, as only 20% now favor increasing capex compared to 34% previously. This marks a dramatic reversal from the aggressive investment stance that has characterized recent corporate behavior.

Despite these concerns, overall investor sentiment remains strongly bullish, with BofA's composite sentiment gauge reaching 8.2 - the highest level since mid-2021. Investors are betting heavily on continued economic strength, with net 52% expecting a "no landing" scenario for the global economy, a record high. The survey also shows net 39% anticipating a stronger global economy over the next 12 months, with expectations turning positive in November 2025.

On the positioning front, investors are showing unprecedented confidence in equities, with net 48% overweight - the highest since December 2024. However, the survey also reveals growing risk concerns, as the BofA Bull & Bear Indicator rose to 9.5, triggering a contrarian "sell signal." Investors cite an "AI bubble" as the biggest tail risk at 25%, while 43% see private equity and private credit as potential sources of systemic credit events. The survey suggests a market at a crossroads, balancing record optimism against mounting concerns about overinvestment and bubble risks.