Global investors are more optimistic about the economy during the next year. The Bank of America Merrill Lynch Survey of Fund Managers reports that only 3 percent of fund managers surveyed in January believe the global economy will experience a slowdown in 2012, compared to 27 percent in December.

The global survey of 214 institutional investors also showed that individuals are turning back to more risky ventures now that things are improving.  The BofA Merrill Lynch Composite Risk and Liquidity Indicator is the highest it has been since July 2011, before the sovereign debt crisis fully emerged. Cash levels have fallen to their lowest levels since last July and cash now makes up about 4.4 percent of a portfolio, compared to 4.9 percent in December.

The proportion of investors taking lower than normal risks has improved to a net 33 percent of the panel, compared to a net 42 percent in December.