Bank of America survey shows investors returning to risky assets at a record pace

Optimism about economic growth and strong corporate profits is driving fund managers back into risky assets at a record pace, according to a monthly Bank of America survey. The survey showed that the level of risk in investors' portfolios has reached its highest level since 2001 in three months, with a sharp increase in allocations to US and European stocks and technology stocks. The July survey showed the biggest increase in allocations to US stocks since December. Allocations to technology stocks also recorded their largest three-month increase since 2009. In addition, the degree of overweight to euro zone stocks reached the highest level in four years.