Thu, Jul 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

BofA Merrill Lynch fund manager survey finds investors increasingly bullish as global economy regains growth path

Wednesday, January 16, 2013

Bailey McCann, Opalesque New York: A new survey of fund managers done by Bank of America Merrill Lynch shows that investors are becoming cautiously bullish on the global economy and as such are taking a renewed interest in equities. The new year sees asset allocators assigning more funds to equities than at any time since February 2011, while their confidence in the world’s economic outlook has reached its most positive level since April 2010.

According to the survey, investors’ appetite for risk in their portfolios is now at its highest in nine years, while an increasing number judge equities as undervalued – particularly in Europe. Investors have also reduced cash holdings to 3.8% from 4.2% in December. Investors are also starting to become less concerned about the US fiscal crisis even as Congress still refuses to act. Participants’ perception of the U.S. fiscal crisis as the biggest "tail risk" for asset markets has calmed (down nearly 20 percentage points in two months), though it remains their largest concern.

Almost 60% of participants expect that the global economy will strengthen compared to 40% at the end of 2012. This marks the panel’s most positive outlook since April 2010. An increasing proportion of respondents expect inflation to pick up as well.

The risk-on rally is likely to continue as half of participants expect that bonds will be sold in favor of higher beta equities. Worries over Europe are starting to decline as well, with concern over Italy......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  3. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  4. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  5. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

 

banner