Asset Managers Defy Caution, Stick with Stocks Amid Global Growth Bets

Global asset managers are bucking the trend of caution, sticking with stocks as they bet on continued growth and easier monetary policies. The decision is a stark contrast to the more conservative approach taken by many investors in the face of rising inflation and market volatility. According to a recent survey by JPMorgan Asset Management, the majority of global asset managers remain overweight in stocks and credit, with 62% of respondents citing solid growth and easier monetary and fiscal policies as the primary drivers of their investment decisions. This optimism is reflected in the market, with the S&P 500 index up 12% year-to-date, outpacing the 8% gain in the Bloomberg Barclays Global Aggregate Bond Index. The asset managers' confidence in the market is also evident in their allocation of assets. A survey by the Investment Company Institute found that in the third quarter of 2025, equity funds saw net inflows of $143 billion, while bond funds experienced net outflows of $21 billion. This shift towards equities is a significant departure from the previous quarter, when bond funds saw net inflows of $34 billion. The market impact of this trend is being felt across the globe. In the United States, the S&P 500 index has broken through the 4,000 level, while in Europe, the Stoxx 600 index has risen 10% year-to-date. The rally has been driven by a combination of factors, including the easing of monetary policies and the passage of stimulus packages in several countries. JPMorgan Asset Management's global multi-asset strategist, Sylvia Sheng, said that the firm's expectation of solid growth and easier monetary and fiscal policies supports a risk-on tilt in their multi-asset portfolios. "We remain overweight stocks and credit," she said. "Our expectation is that the global economy will continue to grow, driven by a combination of fiscal and monetary policy support." The asset management industry has seen significant growth in recent years, with assets under management (AUM) reaching a record high of $120 trillion in 2025. The industry's largest players, including BlackRock and Vanguard, have seen their AUM grow by double digits in the past year. Looking ahead, the outlook for the asset management industry remains positive. Many analysts expect the industry to continue growing, driven by increasing demand for investment products and the expansion of the global economy. However, there are also risks on the horizon, including rising inflation and market volatility. In conclusion, the decision by global asset managers to stick with stocks is a reflection of their confidence in the market and their expectation of continued growth. While there are risks on the horizon, the industry's largest players remain optimistic about the future, and many analysts expect the industry to continue growing in the coming years.