Global fund managers have increased their stock allocations to a record high in May, according to a Bank of America survey. The survey also revealed a significant drop in cash levels among respondents, from 4.3% to 3.9%, marking the largest monthly decline since February 2024. The survey highlighted that 40% of respondents view a second wave of inflation as the greatest tail risk, while only 4% foresee a "hard landing" for the economy. Additionally, 66% of respondents expect the shipping bottleneck in the Strait of Hormuz to resolve in the coming months. On U.S. Treasury yields, 62% anticipate the 30-year yield to reach 6%, with another 20% expecting it to hit 4%.