Bullish sentiment among professional investors is rising: 47% of professional investors say they are bullish on US stocks over the next 12 months. This marks a material improvement from the 28% seen in the spring, the lowest reading since at least 1997. 62% say they have lowered their allocations to bonds and cash since April. As a result, institutional investors’ equity allocation has risen to 73%. Nearly 60% also say they have increased their allocations to non-US stocks over the last 12 months. Appetite for risk remains strong.