Global fund managers have reduced their cash holdings to the lowest levels in 15 years, with cash allocations dropping to 3.5%, according to Bank of America's latest fund manager survey. This shift indicates a strong bullish sentiment among investors, who are heavily invested in stocks while betting against other asset classes. The survey, conducted among 168 participants managing $400 billion in assets, also highlighted that 89% of investors view U.S. equities as overvalued, the highest level since at least April 2001. Despite this, optimism about global equity markets remains high, with expectations of robust economic growth and potential Federal Reserve rate cuts in 2025. Concerns over a global trade war have risen, now seen as the top 'tail risk' by 39% of respondents, surpassing fears of inflation and rate hikes. Global recession fears have fallen to a three-year low, and 77% of fund managers expect the Fed to cut rates in 2025.