Top 8 Takeaways From Bank of America Merrill Lynch’s Global Fund Manager Survey
IBy Michael Hartnett, Jared Woodard and Tommy Ricketts, BofAML D
Analysts at Bank of America Merrill Lynch have just dropped their top eight takeaways from their global fund manager survey.
Bearish positioning = rally
year high in leverage fear…but investors discounting “secular stagnation” not
Global GDP & EPS growth expectations plummet toward 2001 & 2009 lows…but just 14% of investors see “recession” in 2019.
Investor demand for companies to improve balance sheets highest since Sept’09; investors demand
Safe US$ haven
Long US$ is #1 “crowded trade”, US$ seen as most “overvalued” since 2002; #1 tail risk is still “trade war” but fears are way down from Jul’18 peak.
FMS de-risk ends
The good news was inflation expectations plunged allowing investors to discount a new dovish Fed & a bull steepening of
Cash high as investors nibble
FMS cash levels up slightly to 4.9%, hedge fund gross exposure cut to 8-year low; Jan FMS shows investors adding to tech & EM
BofAML FMS Rules & Tools
Still “defensive” but
Jan FMS contrarian theme & trades