BlockBeats news, on August 18, according to Bank of America’s August Global Fund Manager Survey, 32% of investors identified the artificial intelligence bubble as the largest tail risk event. Tail risk refers to the possibility of extreme and rare events that could significantly impact financial markets. The survey found that 27% of respondents considered disorderly rises in bond yields as the second-largest tail risk event.
Meanwhile, investor confidence in U.S. stocks outperforming other regional markets has further strengthened. The survey found that 27% of responding portfolio managers allocated more to U.S. stocks than the global benchmark weight, up 3 percentage points from July and the highest level since December 2024.
This year, the U.S. stock market has still outperformed most other global markets, with the S&P 500 rising 13% and the Euro Stoxx 600 increasing 10%. However, the stock markets in Japan and South Korea have outperformed the U.S. market over the same period.