The S&P Global Investment Manager Index (IMI) Risk Appetite Index rose to +18% in November from +4% in October, marking its highest level since December 2024 and signaling improved investor optimism for a second straight month amid lower rates and better earnings expectations.

• Investor sentiment has strengthened for a third consecutive month, driven by expectations of accommodative central bank policy, stronger fundamentals, and easing macro concerns.

• Earnings expectations were revised upward by the largest margin in four years following the recent earnings season, with improved views on both U.S. and global growth.

• The U.S. economy is now viewed as a driver of equity value for the first time since February, while global conditions are seen as neutral after a 16-month drag.

• Valuations remain the biggest perceived headwind, with their negative impact intensifying to the second-highest level since late 2020; political concerns have eased to the lowest since January despite the government shutdown.

• Tech sentiment turned most bullish in a year, supported by strength in fundamentals, with healthcare, financials, and industrials also improving. Real estate, consumer discretionary, and consumer staples remain least favored, though bearishness has softened.

• Shareholder return preferences have shifted toward buybacks, now at their strongest since 2022, while dividend growth faces pressure from tariff-related uncertainty and rising AI investment costs.

• S&P Global noted that investor optimism is underpinned by improving fundamentals and policy support, though elevated valuations continue to cap broader market enthusiasm.