Equity allocation rises as recession concerns “plummet”

Allocations to global equities increased in December, as investor concerns over a recession “plummet” while global growth expectations improved.

The amount of money allocated to global equities “jumped” 10 percentage points to net 31% overweight throughout the month – the highest level in one year – while cash levels remain steady at 4.2%, the same as November.

Bonds allocations continued to tick down and fell to net 48% underweight – the most underweight in over a year, according to Bank of America Merrill Lynch’s monthly fund manager survey.

Recession concerns dropped 33 percentage points. Just under 70% of investors said a recession is unlikely next year.

Growth expectations jumped 22 percentage points, with 29% of the 199 respondents indicating they expect growth to improve over the next year, marking the biggest two-month jump on record for this category.

While 65% of fund managers expect below-trend growth and inflation, 20% said they believe the global economy will experience above-trend growth, which was the highest percentage in the last seven months.

©2019 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST