MILAN (Reuters) - Expectations over interest rate cuts rather than earnings optimism has made investors the "most bullish" since November 2021, Bank of America's monthly fund manager survey for May showed on Tuesday.

The survey of global fund managers with $562 billion in asset under management found 82% expect the first by the rate cut by the Federal Reserve in the second half, while 78% say a recession is unlikely over the next 12 months.

Cash levels fell to a 3-year low of 4% from 4.2% the previous months and stock allocation reached its highest since January 2022, the survey showed.