Bofa fund manager survey shows surge in growth expectations

LONDON (Reuters) - A survey of almost 200 global fund managers by BofA has shown a record surge in global growth expectations over the last two months has drastically cut recession worries.

The December installment of the poll revealed that 20% of money managers now think the world economy will experience above-trend growth and below-trend inflation next year -- the so-called ‘goldilocks’ scenario.

Allocation to global equities jumped 10 percentage points month-on-month to a net 31% overweight which is the highest level in a year, while their cash levels -- a gauge of risk aversion -- are the lowest since March 2013 at 4.2%.

The BofA survey showed the most ‘crowded’ trades were currently: #1 long U.S. tech & growth stocks, #2 long U.S. Treasuries and #3 long investment grade corporate bonds.

Reporting by Marc Jones; Editing by Tom Arnold