“Super bearish” fund managers’ allocation to global stocks at all-time low, Bank of America survey shows

An indication for a Financial institution of America workplace is pictured in Burbank, California August 19, 2011. Financial institution of America Corp plans to chop 3,500 jobs within the subsequent few weeks as CEO Brian Moynihan tries to come back to grips with the financial institution’s $1 trillion pile of downside residence mortgages. REUTERS/Fred Prouser/File Picture

LONDON, Sept 13 (Reuters) – Fund managers are “tremendous bearish” with common allocations to money on the highest since 2001 and allocation to world shares at an all-time low, in accordance with Financial institution of America’s (BofA) month-to-month survey of worldwide fund managers for September.

The outcomes come at the same time as MSCI’s gauge of shares world wide (.MIWO00000PUS) has rallied 3% to date in September, although after a bruising first half the index remains to be down 16% this 12 months.

The survey additionally marks a return to doom and gloom after August’s iteration discovered traders have been bearish however not “apocalyptically” so. learn extra

BofA, which polled 212 traders overseeing $616 billion in property from Sept. 2-8, mentioned 72% of these surveyed mentioned they anticipated a weaker economic system subsequent 12 months, and essentially the most crowded commerce was lengthy U.S. greenback.

The U.S. forex is usually seen as a secure haven in instances of financial issue.

In distinction, traders have been staying away from equities which generally rise in good instances, and the survey discovered traders had a file underweight place in shares.

They discovered the online share of traders who mentioned they have been chubby shares was -52% in comparison with -26% the earlier month, a decrease stage than through the monetary disaster.

Reporting by Alun John, modifying by Danilo Masoni and David Evans

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