thewealthnet     About Us    |    FAQs    |    Contact Us
  Advanced Search       RSS Feed  twitter  linkedin 
Welcome to thewealthnet    |   Europe, Middle East & Africa Get The App   |   Login
  Tue 12th Dec 2017  |    Make this my homepage  
Subscribe now!
Credit Cards Accepted
World Map
Macro expectations of high growth and low inflation at record high says BofAML fund manager survey
18/05/2017 , News Team

Investors’ macro expectations find the global economy to be just right, with a record high 34 percent citing a Goldilocks scenario of high growth and low inflation, according to the BofA Merrill Lynch May fund manager Survey. 

Profit expectations are at a three-year high as net 56 percent of respondents say global profits will improve over the next 12 months. 

FMS cash levels remain unchanged from April at 4.9 percent, still above the 10-year average of 4.5 percent.

China has replaced European disintegration as the most commonly cited tail risk for the first time since January 2016, with 31 percent of global fund managers citing Chinese credit tightening as the biggest risk in the market.

Long Nasdaq is seen as the most crowded trade for the first time, knocking long US dollar off the top spot after five months. Despite this, net 23 percent of investors still say the USD is overvalued.

Investors’ views on valuation continue to vary by region with net 82 percent of fund managers thinking that the US is the most overvalued region, near April’s all-time high; while, Eurozone and EM equities are seen as undervalued, at net 20 percent and net 44 percent respectively.

Net 59 percent of investors are overweight Eurozone equities, up from net 48 percent overweight in April and the highest allocation since March 2015. Allocation to UK equities has risen to a net 27 percent underweight versus net 34 percent underweight last month. Japan equity allocation fell for the second month to a net 12 percent overweight as investors increase their allocation into European equities.

“Investor sentiment is bullish,” said Michael Hartnett, chief investment strategist. “But irrationality is not yet visible despite all-time highs in credit and equity markets, robust global EPS and a benign French election result.”

Ronan Carr, European equity strategist, added: “Allocation to Eurozone equities is at its third highest level on record. The recent outperformance seems due for a pause, especially versus the U.S.”

Commenting on the Japanese market, Shusuke Yamada, chief Japan FX/equity strategist said: “Although global investors’ allocation to Japanese equities declined for a second month; easing risk factors, better currency levels, and fundamentals hint of a possible summer rally.”

Share with Linkedin Share with Twitter
Poor   Average   Good   Excellent
thewealthnet archives contain 48,094 articles dating back to 1997,making it the largest single source of information on the wealth management industry world-wide. To search for more articles, please click here.


© This article originally featured on thewealthnet. It is protected by international copyright law. If you copy this article illegally, you will be liable to prosecution. All rights in and relating to this article are expressly reserved. No part of this article may be reproduced, stored in a retrieval system or transmitted in any form or by any means without written permission from the publishers.

    Latest Headlines:    by Topic | All News
  Advertise   |   Contribute   |   Press Release   |   Terms of Use   |   Privacy   |   Contact Us Copyright Pam Insight Ltd., All Rights Reserved