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Global Fund Managers Sour on Maekets / Increasingly Moving to Cash - BofA Survey
”The mood among global fund managers soured further in May, with investors flocking to cash amid concerns that a recession and credit crunch are looming, according to Bank of America Corp.’s latest survey. The sentiment among fund managers deteriorated to the most bearish this year, with 65% of survey participants now expecting a weaker economy,”
Big rotation out of commodities, utilities, and into tech stocks — highest since December 2021 — and euro-zone equities
Investors are most long growth versus value stocks since July 2020; survey investors have said only twice since September 2020 that growth would outperform value
After long big tech, most crowded trades include short US banks, short US dollar, long European equities, long T-bills and long China equities
Bank credit crunch and global recession are seen as top tail risks, followed by high inflation keeping central banks hawkish, worsening geopolitics and systemic credit event
Share of surveyed investors expecting a debt ceiling resolution ahead of the X-date dropped from 80% in April to 71% in May
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