BofA Merrill Lynch Fund Manager Survey Finds Renewed Confidence in Global Equities
22.05.12
Allocations towards equities have made the largest one-month leap since
the beginning of 2011. A net 26 percent of asset allocators are
overweight equities, up from 12 percent last month. Appetite for
cyclical stocks, including Industrials and Materials sectors, has picked
up while allocations towards defensive stocks, including Pharmaceuticals
and Telecoms, have fallen. Investors have also reduced cash levels. A
net 13 percent of asset allocators are overweight cash, down from a net
27 percent in January.
A majority of the panel now sees the world economy improving. A net 11
percent says the economy will strengthen in the coming 12 months – in
December, a net 27 percent predicted a worsening economy. Investors also
say that liquidity conditions and the ease of trading have bounced back.
A net 32 percent of the panel assessed liquidity as “positive,” compared
with a net 7 percent saying “negative” in January – the largest
one-month improvement since the survey first asked the question in
October 2007.
Source: Business Wire (press release)