Geopolitical tensions, particularly the conflict in Iran, have emerged as the primary concern for global investors, according to Bank of America's March fund manager survey. The survey highlights a shift in perceived risks, with geopolitical crises and inflation now seen as the biggest threats, replacing fears of an AI bubble. This change comes as investors increase cash holdings at the fastest rate since March 2020, driven by rising oil prices and inflation expectations. The survey also reveals a significant drop in expectations for Federal Reserve rate cuts, with only 17% of asset managers anticipating a reduction, down from 46% in February. This reflects the impact of geopolitical instability and inflation on market sentiment, prompting a reassessment of the global economic outlook.