December 17, 2019 / 1:00 PM / a month ago

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

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below