{"id":43541,"date":"2015-07-20T01:12:37","date_gmt":"2015-07-19T23:12:37","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/bofa-merrill-lynch-fund-manager-survey-finds-investors-hiking-cash-holdings-in-the-face-of-lowered-confidence-in-china\/"},"modified":"2015-07-20T01:12:37","modified_gmt":"2015-07-19T23:12:37","slug":"bofa-merrill-lynch-fund-manager-survey-finds-investors-hiking-cash-holdings-in-the-face-of-lowered-confidence-in-china","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/bofa-merrill-lynch-fund-manager-survey-finds-investors-hiking-cash-holdings-in-the-face-of-lowered-confidence-in-china\/","title":{"rendered":"BofA Merrill Lynch Fund Manager Survey Finds Investors Hiking Cash Holdings in the Face of Lowered Confidence in China"},"content":{"rendered":"<p>Global investors have raised their holdings of cash significantly in response to a weaker global economic outlook, particularly in China, according to the BofA Merrill Lynch Fund Manager Survey for July. Overall, equity allocations are unaffected by the higher risk aversion, however.<\/p>\n<ul>\n<li> Confidence in the global economy falls sharply: 42 percent of investors expect strengthening over next year, down from 55 percent a month ago.<\/li>\n<li> China heads concerns: net 62 percent expect economy to weaken in next 12 months; eight out of 10 see GDP below 6 percent by 2018.<\/li>\n<li> Cash levels soar to highest level since 2008 crisis \u2013 5.5 percent of portfolios; gold judged undervalued for first time in five years.<\/li>\n<li> Increased pessimism on China led further weakness in assets linked to China: Commodity allocation drops to six-month low, and Global Emerging Market equities stays as most unloved region with allocations at 16-month low.<\/li>\n<li> Bonds still seen as much more overvalued than equities and more at risk of volatility-driven crash; equity overweights rise to net 42 percent.<\/li>\n<li> U.S. dollar bullishness strengthens despite postponing of expected U.S. rate rise to Q4 2015 or later, replacing June consensus of Q3.<\/li>\n<li> Appetite to overweight European stocks rises, although potential eurozone breakdown now biggest \u201ctail risk.\u201d<\/li>\n<\/ul>\n<p><em>\u201cRising risk aversion and stretched cash levels provide a contrarian buy signal for risk assets in Q3,\u201d<\/em> said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research.<\/p>\n<p><em>\u201cDespite the Greek newsflow, intention to own European assets is high and rising, though global growth remains vitally important for European stocks,\u201d <\/em> said Manish Kabra, European equity strategist.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global investors have raised their holdings of cash significantly in response to a weaker global economic outlook, particularly in China, according to the BofA Merrill Lynch Fund Manager Survey for July. <\/p>\n","protected":false},"author":20,"featured_media":43539,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1655,1671,1651,1437,1724,1999,1803,2091],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/43541"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=43541"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/43541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/43539"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=43541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=43541"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=43541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}