(Bloomberg) -- Investors are in a risk-on mood, and are snapping up stocks in Europe and emerging markets at the expense of the US and the technology sector, according to Bank of America Corp.’s latest fund manager survey.

Participants had the biggest jump in allocations to European equities since June 2020, and the biggest increase in allocations to developing-nation equities since April 2017, strategists led by Michael Hartnett wrote in a note. Financials were also in favor in the March survey, with the new risk-on preferences coming at the cost of US stocks and the technology and consumer discretionary sectors.

Fund managers are seeking more global exposure as the poll showed risk appetite reached the highest level since November 2021 and an economic soft landing remained the consensus view. Allocation to stocks is at a two-year high, but bullish positioning in the US is elevated, with the survey showing that being long on the Magnificent Seven group of US technology stocks is the most crowded trade.

Investors in the poll were split on whether or not artificial intelligence stocks are in a bubble, with 40% saying yes and 45% answering no.

The survey findings also highlight optimism about global growth expectations, which is at the highest in over two years, according to the poll. Investor bets on global markets have been paying off recently. European stocks have gained over the past eight weeks, outperforming the S&P 500. The MSCI Emerging Markets Index also outpaced the US benchmark’s gains over the same period.

The poll was conducted between March 8 to March 14, spanning 198 participants with $527 billion in assets under management.

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