Fund managers rate US as favourite equity region, says investor survey
The survey found investors gloomy on world economic growth prospects, with a net 44% expecting a deceleration in the coming year
Despite market wobbles, the US is the most favoured equity region for global fund managers, who broadly expect the S&P 500 index to rise another 12% before peaking, Bank of America Merrill Lynch’s (BAML’s) latest investor survey showed on Tuesday. The November survey, canvassing investors managing $641bn, was conducted from November 2-8 as funds, relieved over the outcome of the US midterm elections, rushed to buy more equities. The survey found investors gloomy on world economic growth prospects, with a net 44% expecting a deceleration in the coming year, the worst outlook since the 2008 financial crisis. A net 54% expect a Chinese slowdown, the most bearish in more than two years. A trade war was named as the top risk for the sixth month in a row, followed by central bank policy tightening. Yet only 11% expected a global recession in 2019, and in a sign of confidence, poll participants cut their cash balances to an average 4.7%, versus October’s 5.1%. They also upped allocation to...
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