Investors are no longer ‘doomsday discounts’, BofA poll says According to Reuters

© Reuters. FILE PHOTO: A man walks near a Bank of America branch in New York’s Times Square December 11, 2008. REUTERS / Brendan McDermid / File Photo

By Lucy Raitano

According to Bank of America (NYSE:)’s (BofA) monthly survey of global fund managers in August, investors are still bearish but no longer “the apocalypse,” according to the weekly survey. Bank of America (NYSE:) (BofA) month on global fund managers in August, when hopes for inflation rise and interest rate shocks will end. in the coming quarters.

BofA, which polls investors that oversees $836 billion in assets from August 5-11, said Tuesday that it has cut its net underweight position in stocks to negative. 26%. That is an improvement from the low of minus 44% in July, the level last seen during the 2008 global financial crisis.

However, recession fears continue to grow, with 58% of investors predicting a global recession in the next 12 months, up from 47% last month and the highest since May. 2020.

BofA said the proportion of uninvested cash in its portfolio fell to 5.7% from 6.1% in July, but remained “very high”.

Stocks have rallied over the past two months after a fierce first half of 2022, and BofA said August saw a major turnout for US, tech and consumer stocks, while investors Investors sold off defensive stocks such as utilities and consumer goods, as well as UK Stocks.

US shares are up about 12% last month, but are still down about 10% so far.

Recent US inflation data was better than expected, leading to expectations that the Federal Reserve would not raise interest rates as aggressively as investors had previously predicted.

Despite increased investor sentiment, Bofa said the survey indicates that its Bull/Bear indicator remains at “maximum bearishness”.

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