Finance
Global investors stay 'uber-bullish' but warn companies are overinvesting
Published by Global Banking & Finance Review®
Posted on February 17, 2026
1 min readLast updated: February 17, 2026
Quick Summary
Global investors are optimistic despite overinvestment concerns, with strong market sentiment and high earnings growth expectations.
Global Investors Remain Highly Optimistic Despite Overinvestment Concerns
Investor Sentiment and Market Trends
MILAN, Feb 17 - Global investors are increasingly worried that companies are overinvesting, just as market sentiment remains “uber‑bullish” and further asset gains look harder to achieve, Bank of America’s monthly fund manager survey showed on Tuesday.
Concerns Over Overinvestment
The poll of 162 managers overseeing $440 billion found cash balances rose to 3.4% from January’s record‑low 3.2%, while investors stayed heavily overweight commodities and equities and deeply underweight bonds.
Macro Optimism and Earnings Growth
Macro optimism improved further, with expectations for a global “boom” at the highest since February 2022 and forecasts for earnings growth topping 10%, their strongest since 2021. But a record share of respondents said companies are spending too aggressively, and chief investment officers now favour strengthening balance sheets over increasing capital expenditure.
Risks in AI Investments
AI bubbles once again topped the list of investors’ biggest tail risks.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
Key Takeaways
- •Investors are worried about company overinvestment.
- •Market sentiment remains highly optimistic.
- •Cash balances have slightly increased.
- •Macro optimism and earnings growth expectations are high.
- •AI investment risks are a major concern.
Frequently Asked Questions about Global investors stay 'uber-bullish' but warn companies are overinvesting
1What is overinvestment?
Overinvestment occurs when a company allocates more resources to a project or asset than is justified by its expected returns, potentially leading to inefficiencies and reduced profitability.
2What is macro optimism?
Macro optimism refers to a positive outlook on the overall economic environment, including expectations for growth, employment, and market performance.
3What are equities?
Equities represent ownership in a company, typically in the form of stocks. Investors buy equities to gain a share of the company's profits and potential capital appreciation.
4What is investor sentiment?
Investor sentiment is the overall attitude of investors toward a particular market or asset, often influenced by economic indicators, news, and market trends.
5What are tail risks?
Tail risks are rare but severe events that can lead to significant losses in investment portfolios, often occurring outside of normal market conditions.
