Investor optimism has climbed to its third-highest level since 2022, according to Bank of America's August Global Fund Manager Survey, with portfolio cash holdings approaching historic lows and allocations to equities reaching their strongest level in nearly five years.
Cash declined to 3.5% of **** ets under management in August from 3.6% in July, representing the sixth-lowest reading since the survey began in 1998. BofA's Global FMS Cash Rule, which is designed as a contrarian indicator, therefore remains on "sell," as the signal is activated whenever cash allocations fall to 4.0% or below.
At the same time, global equity exposure increased to a net 56% overweight, its highest level since November 2021. Fund managers have now maintained an overweight position in equities for 14 consecutive months.
Confidence in the economic outlook has also strengthened significantly. A record 56% of respondents anticipate a "no landing" scenario, while 43% expect a "boom" outcome, the highest proportion since February 2022.
"Consensus conviction is no macro landing, no Fed hike, no AI capex cut, no DEM sweep, no bears," BofA strategists led by Michael Hartnett said in a note.
#since #august #allocations
Cash declined to 3.5% of **** ets under management in August from 3.6% in July, representing the sixth-lowest reading since the survey began in 1998. BofA's Global FMS Cash Rule, which is designed as a contrarian indicator, therefore remains on "sell," as the signal is activated whenever cash allocations fall to 4.0% or below.
At the same time, global equity exposure increased to a net 56% overweight, its highest level since November 2021. Fund managers have now maintained an overweight position in equities for 14 consecutive months.
Confidence in the economic outlook has also strengthened significantly. A record 56% of respondents anticipate a "no landing" scenario, while 43% expect a "boom" outcome, the highest proportion since February 2022.
"Consensus conviction is no macro landing, no Fed hike, no AI capex cut, no DEM sweep, no bears," BofA strategists led by Michael Hartnett said in a note.
#since #august #allocations
2 months ago
