From Financial Modeling Prep: 2025-02-19 05:52:46

1. Global fund managers reduced cash levels to 3.5%, the lowest since 2010, signaling higher risk appetite and a bullish outlook despite valuation concerns.
2. Investors are overweight in equities (+35%) and Euro-area stocks, while underweight in bonds (-11%) and cash, with top indices for 2025 being EuroStoxx, Nasdaq, and Hang Seng.
3. The tech sector saw a significant decline in long positions, driven by overvaluation worries and a rotation to bond-sensitive industries.
4. Recession fears hit a 3-year low with 82% of fund managers no longer expecting a recession, although China’s growth optimism contrasts with emerging markets’ lack of momentum.

   Final Thoughts: Cash levels at record lows indicate more investment in stocks, while concerns about US stock overvaluation and tech sector sell-off pose risks. Monitoring central bank policies and inflation expectations is crucial for market stability.

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