MILAN (Reuters) - European stocks saw their second largest allocation in a quarter of a century in January, as lagging risk assets played catch up, according to a survey of investors from BofA Global Research published on Tuesday.

In a report titled "Make Europe Great Again", BofA ( BAC ) said asset allocation remained risk-on, with investors bullish towards the U.S. dollar ( DX=F ) and stocks, but bearish towards everything else.

Investors were the most underweight on bonds since October 2022, while cash levels ran low at 3.9%, said the survey of 182 participants with $513 billion of asset under management.

A disorderly rise in bond yields was seen as the most bearish development for 2025, BofA said.