Investor sentiment is still bearish but no longer “apocalyptic” like a month ago, according to theBofA’s monthly survey of global fund managers in August, while hopes rise that inflation and interest rate shocks will end in the coming quarters.
BofA, which interviewed investors overseeing $ 836 billion of assets, said equity allocations remained negative at minus 26%, but that’s an improvement from the minus 44% lows in July, levels seen the latest. time in the 2008 global financial crisis.
Shares have risen in the past two months after a brutal first half of 2022, and BofA said August saw a large rotation in US equities, technology and consumer equities, as investors sold defensive stocks as utilities, prime assets. UK needs and actions. There liquidity share uninvested in portfolios fell to 5.7% from 6.1% in July, but remained “very high,” says BofA.
Il July survey had seen it collapse to an all-time lowand expectations of global growth and corporate profits with liquidity levels that had reached their highest level in over two decadeswith investors having significantly reduced their exposure to risky assets. Equity allocations, on the other hand, had plummeted to the levels last seen when Lehman Brothers went bankrupt in 2008.
Over the past month, the S&P 500 has risen by as much as 11%, the Nasdaq by about 14.8%. From the lows of June 16, the S&P 500 marks + 17% and the Nasdaq + 22.8%. In Europe, the Euro Stoxx 50 marks over + 9% in the last month.