Fund managers' optimism has surged to a record high of 5.8 in October 2025, according to a Bank of America report. This marks a significant increase since the onset of the U.S.-China trade war, nearing levels last seen after Donald Trump's election in February 2025. The report highlights a decline in recession fears, with 69% of respondents considering a U.S. recession unlikely. Despite the optimism, concerns over AI and inflation persist, with 33% of fund managers identifying AI as a potential bubble. These issues have emerged as the top market concerns, reflecting the shifting focus of financial professionals in the current economic climate.