From Komfie Manalo, Opalesque Asia: The majority of investors are increasingly bullish about prospects for global growth this year while few expect more rounds of quantitative easing (QE) by central banks, according to the BofA Merrill Lynch Survey of Fund Managers for March 2012.
The survey, which included 278 panellists with $796bn in AuM, was conducted by BofA Merrill Lynch Research with the help of market research company TNS.
At least 28% of those polled said that investors expect the world economy to strengthen in the coming 12 months – a large increase from a net 11% in February during which, a net 35% predicted the economy would deteriorate. In January, the majority of respondents predicted that the economy would weaken.
Michael Hartnett, chief Global Equity strategist at BofA Merrill Lynch Global Research, commented, "The prospect of higher inflation reflects a victory of central banks in the war against deflation. Risk appetite is rising with hedge funds more active, but cash is still on the sidelines to put to work.
"We are witnessing a rehabilitation of European growth prospects, boosted by a sharp fall in EU sovereign concerns," added Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.
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