There has been a sharp rise in investor sentiment this month the Bank of America Merrill Lynch (BofA) survey of fund managers has found.
Only 15% of the 173 respondents said that growth would continue and are confident that the world economy will make solid improvements over the next year.
However Bank of America Merrill Lynch said that this was the largest number of positive responses since the emergence of the credit crunch in April/ May 2009.
BofA said that fund managers have increased allocations to equities, real estate and commodities following low numbers a month earlier when the bank’s growth expectations composite rose from 37 to 49 a month later.
The US wealth manager said that investors are now keen to take risks again following sharp improvements in attitudes towards the economy.
Head of European equities strategy at BofA Merrill Lynch global research, Gary Baker said: “August’s surge in confidence seems to be more a triumph of policy projection and potential than positive economic data. As indicated by the survey, the risk is now that inaction by policy makers would lead to a negative reaction in global markets.”
Panellists, who collectively manage $491bn, completed the global survey from 3-9 August 2012.