Investor risk appetite weakened in Bank of America’s September 2026 Global Fund Manager Survey as a disorderly rise in bond yields remained the leading market tail risk and corporate overinvestment reached a record concern. Cash holdings rose to 3.9% from 3.5%, while BofA said investors could increase risk exposure when cash returns to a neutral 4%-5% range. Fund managers remained constructive on growth and artificial-intelligence spending: 55% expected a no-landing outcome, a net 8% expected further global growth acceleration, and expectations for double-digit earnings growth reached their highest level since August 2021. AI hyperscaler capital expenditure was the most-cited potential source of a systemic credit event, while long global semiconductors remained the most crowded trade. Investors trimmed stock and commodity overweights, retained a large bond underweight and rotated into healthcare, industrials and banks. The Federal Reserve, Treasury yields and the US midterm election outcome remained key risks for markets.