Wednesday , 20 February 2019

Latest Bank of America Merrill Lynch Fund Manager Survey Results Revealing

According to the latest Bank of America Merrill Lynch fund manager survey:

The comments above and below are excerpts from an article by Dave Baxter ( which has been edited ([ ]) and abridged (…) to provide a fast & easy read.

  •  33% of investors surveyed believed gold was the best hedge against protectionism while a record net 15% of respondents considered it to be undervalued.
  • 41% of investors pointed to a long US dollar strategy…as the most crowded trade followed by 14% who thought the most crowded trade was being short government bonds.
  • a net 28% of respondents identified the USD as overvalued, marking the highest proportion since September 2006,
  • 34% thought trade protectionist policies were the most likely catalyst for the end of the eight-year bull market while 28% identified higher interest rates and 18% opted for a “financial event”.
  •  36% of respondents pointed to European elections and the associated “disintegration risk” in the eurozone as the biggest “tail risk” facing them, 32% identified the prospects of a trade war, while 13% talked of a crash in global bond markets.
  • 23% of investors said they expected a boom – defined as above trend growth and inflation – to emerge compared with a mere 1% a year earlier although 43% said they expected secular stagnation – below trend growth and inflation – to emerge, down significantly from 88% a year ago.

Win An iPad Pro! is so convinced you’ll love their website they are raffling off an iPad Pro to those who registers here by June 30, 2017. For more information please read the contest Terms and Conditions.
800+ authors contribute to so check it out, register here and then program the site to provide you with exactly what you want by topic and author.

On a regional basis fund managers appeared to be taking advantage of bearish sentiment:

  • Eurozone equities saw allocations rise to eight-month highs, with net 23% overweight, compared with 17% the month before.
  • Emerging market equities saw allocations improve to net 5% overweight, up from net 6% underweight the month before.
  • Sentiment on Japanese equities also appeared to be strengthening, with the proportion of investors wanting to be overweight the country in the next year rising from 9% to 14% in a month.
If you want more articles like the one above: LIKE us on Facebook; “Follow the munKNEE” on Twitter or register to receive our FREE tri-weekly newsletter (see sample here , sign up in top right hand corner).