THE fund manager globally have increased the liquidity levels in the last month, lowering the stock allocation.
Bank of America (BofA) Global Fund Manager Survey
But they remain optimists about a soft landingge on the performance of US large-cap stocks, even though they now think the Fed needs to cut rates harder to ensure there is no recession. This is according to the usual “Global Fund Manager Survey” by Bank of America (BofA). The survey included 189 operators with assets under management (AUM) of $508 billion.
Investors reduce exposure to equities
Growth expectations in the August survey fell 20 percentage points from July, with 47% of respondents expecting a weaker global economy over the next 12 months. Growth expectations and risk appetite have fallen in recent weeks due to the JPY volatility shock and weak July payrolls, with investors again increasing their cash holdings for the second month in a row. 4.3% from 4.1%.
On monetary policy, 55% of investors believe global monetary policy is too restrictive, the highest since October 2008. Investors’ belief that policymakers need to quickly ease monetary policy is fueling expectations of lower rates. The optimism ofThe basis for a “soft landing” is unchanged, but investors now expect a greater degree of policy easing to be needed over the next 12 months. Fed pto achieve this result.
In particular, the 60% of investors expects 4 or more rate cuts from the Fed in the next 12 months (with the first cut occurring at the FOMC meeting on September 18, according to 94%).
