{"id":57547,"date":"2016-10-24T01:30:00","date_gmt":"2016-10-23T23:30:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/bofa-merrill-lynch-october-fund-manager-survey-shows-global-investor-risk-aversion-growing-as-cash-allocations-increase-to-near-15-year-highs\/"},"modified":"2016-10-24T01:30:00","modified_gmt":"2016-10-23T23:30:00","slug":"bofa-merrill-lynch-october-fund-manager-survey-shows-global-investor-risk-aversion-growing-as-cash-allocations-increase-to-near-15-year-highs","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/bofa-merrill-lynch-october-fund-manager-survey-shows-global-investor-risk-aversion-growing-as-cash-allocations-increase-to-near-15-year-highs\/","title":{"rendered":"BofA Merrill Lynch October Fund Manager Survey shows global investor risk-aversion growing as cash allocations increase to near-15-year highs"},"content":{"rendered":"<ul>\n<li> Investors identify fears of an EU breakup, a bond crash and a Republican winning the White House as the most commonly-cited tail risks.<\/li>\n<\/ul>\n<ul>\n<li> With inflation expectations at a 16-month high and perceptions of developed market equity and bond valuations at record highs, investors are no longer underweight in commodities for the first time since December 2012.<\/li>\n<\/ul>\n<ul>\n<li> Rotation out of healthcare\/pharma, REITs and bonds, into banks, insurance, equities, commodities and EM.<\/li>\n<\/ul>\n<ul>\n<li> Investors cite Long high-quality stocks, Long US\/EU IG corporate bonds and minimum volatility strategies as the most crowded trades.<\/li>\n<\/ul>\n<ul>\n<li> Allocation to EM equities rises to the highest overweight in 3.5 years, from 24% last month to 31% in October.<\/li>\n<\/ul>\n<ul>\n<li> Allocation to U.S. and Eurozone equities is unchanged from last month, while allocation to UK equities falls to net 27% underweight from net 24%.<\/li>\n<\/ul>\n<ul>\n<li> Allocation to Japanese equities improves modestly to net 3% underweight from net 8% underweight last month.<\/li>\n<\/ul>\n<p><em>\u201cThis month\u2019s cash levels indicate that investors are bearish, with fears of an EU breakup, a bond crash and Republicans winning the White House jangling nerves,\u201d<\/em> said Michael Hartnett, chief investment strategist.<\/p>\n<p>Manish Kabra, European equity quantitative strategist, added that, <em>\u201cAlthough investors see an EU-disintegration as a big tail risk, European fund managers surveyed are more optimistic about the economic growth outlook for the Eurozone and expect stronger inflation.\u201d <\/em> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cash levels jumped from 5.5% in September to 5.8% this month. Investors\u2019 average cash balance was last this high in July 2016 (post-Brexit vote) and in Fall 2001.<\/p>\n","protected":false},"author":20,"featured_media":57545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1671,1651,1437,2007,1724,1662,1999,2103],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/57547"}],"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=57547"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/57547\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/57545"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=57547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=57547"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=57547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}