"Institutions have record equity and commodity overweights, very low cash levels and the strongest risk appetite since January 2006," Merrill Lynch said.
"A growing number of fund managers are seeking to benefit from rising commodity prices."
'Primary concern'
Indeed, the investors surveyed rated rising commodity prices as the biggest danger to global economic welfare, with 33% viewing it as the top risk.
"Worries on Europe are fading as commodity price inflation takes centre as the primary risk concern," the bank said.
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