Global fund managers have increased their cash holdings to 4.3% in March, up from 3.4% in February, according to Bank of America's latest survey. This shift comes as geopolitical tensions in the Middle East and rising inflation expectations dampen market risk appetite. Investor sentiment has reached its lowest point in nearly six months, with optimism about global economic growth plummeting from 39% to 7%. The survey, conducted from March 6 to 12, also reveals that 45% of respondents expect the global Consumer Price Index to rise over the next year. Consequently, expectations for Federal Reserve rate cuts have cooled, with only 17% of fund managers anticipating a cut this year, down from 46% in February. Additionally, 34% of investors are now overweight in commodities, and 53% in emerging market stocks, marking the highest levels since April 2022 and February 2021, respectively.