Investors are now more optimistic about global growth and earnings expectations after expressing pessimism last month, according to the results of Bank of America’s November survey of global fund managers.
Of the 388 fund managers surveyed, who oversee a total of $ 1.2 trillion in assets, global growth expectations improved to 3% net in November, from -6% in October, but down from peaked at 91% in March.
Expectations of improved earnings rose to 6% net among survey respondents, up 21 percentage points from October, but down from a peak of 89% in March.
According to a report on the survey results, 65% of fund managers expect a global economic boom in the next 12 months, while 61% say inflation is “transient.” Meanwhile, only 6% of investors expect a recession.
Investors are also more willing to take additional risk this month, with 5% net of fund managers taking “above normal” risk in November, up 10 percentage points from October, but rising down from the peak of 25% in February. .
Inflation tops the list of extreme risks for fund managers, at 33%, followed by central bank rate hikes to 22% and China to 20%.
Cash levels fell month over month to 4.4% in November from 4.7% in October.
Asset allocation to US equities increased 13 percentage points month over month to a net overweight of 29%. The allocation is still down from a peak of net overweighting of 62% in April.