Bullish sentiment for equities among global fund managers is at its highest point since July 2007, according to a recent survey by BofA Merrill Lynch.

The survey, conducted earlier this month, found 55% of managers were overweight equities, up from 40% in December. Conversely, 54% said they were underweight bonds, up from 47% the prior month.

Growing confidence in the global economy and in corporate profits have fed the desire for global equities, trumping inflation concerns.

"The combination of growth optimism and a benign view towards higher inflation provide a potent case for equity investment," Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research, said in a press release.

And one of the areas fund managers like is the U.S.--27% of global fund managers are overweight U.S. equities, the highest reading since November 2008 and nine percentage points above December's survey result.

Fund managers remain bullish on emerging markets, but not as much as before. In total, 43% of surveyed managers were overweight emerging market equities in January, down from 56% two months ago. This downturn in sentiment is due to worries about a slowing Chinese economy.