{"id":60696,"date":"2017-02-15T02:14:56","date_gmt":"2017-02-15T01:14:56","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/bofa-merrill-lynch-february-fund-manager-survey-finds-macro-optimism-surging\/"},"modified":"2017-02-15T02:14:56","modified_gmt":"2017-02-15T01:14:56","slug":"bofa-merrill-lynch-february-fund-manager-survey-finds-macro-optimism-surging","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/bofa-merrill-lynch-february-fund-manager-survey-finds-macro-optimism-surging\/","title":{"rendered":"BofA Merrill Lynch February Fund Manager Survey finds macro optimism surging"},"content":{"rendered":"<ul>\n<li> Macro optimism is surging, with 23% of investors saying they expect a \u201cboom\u201d (above trend growth and inflation) compared to 1% one year ago<\/li>\n<li> Meanwhile, 43% said they expect \u201csecular stagnation\u201d (below trend growth and inflation), down sharply from 88% one year ago<\/li>\n<li> The BofAML Global FMS Macro Indicator[[Introduced this month, the BofAML Global FMS Macro Indicator is a year-on-year measure of investor inflation expectations, capex demand, risk appetite, sector positioning and equity vs. bond positioning.]] is in \u201cbuy\u201d territory; cash levels dipped to 4.9% in February, from 5.1% in January, but levels are still higher than two months ago, which is bullish for risk assets<\/li>\n<li> Investors identify European elections raising disintegration risk as the biggest tail risk (36%), closely followed by a trade war (32%) and a crash in global bond markets (13%)<\/li>\n<li> A net 28% of investors \u2013 the highest proportion since September 2006 \u2013 think the US dollar is overvalued; Long USD also seen as most crowded trade (41%)<\/li>\n<li> Investors rank \u201cprotectionism\u201d as the most likely bear market catalyst (34%), followed by \u201chigher rates\u201d (28%) and a \u201cfinancial event\u201d (18%)<\/li>\n<li> Gold viewed as the best protectionist investment, with a record net 15% of investors considering it undervalued<\/li>\n<li> Allocation to Eurozone equities surges to 8-month highs, with net 23% overweight from net 17% overweight last month.<\/li>\n<li> While allocation to Japanese equities remains little changed, the proportion of investors who want to be overweight over the next year has risen to net 14% (up 5ppt from January)<\/li>\n<li> EM equities allocation improves to net 5% overweight from net 6% underweight last month<\/li>\n<\/ul>\n<p><em>\u201cInvestor allocation and positioning continue to reflect expectations of a higher US dollar. A more hawkish stance by Janet Yellen at this week\u2019s Humphrey Hawkins testimony could provide an upside catalyst for the dollar, given the dovish market pricing of rate hikes,\u201d<\/em> said Michael Hartnett, chief investment strategist.<\/p>\n<p>Manish Kabra, European equity quantitative strategist, added that, <em>\u201cWhile global fund manager sentiment towards Europe improved slightly, there is an increased fear of European political risk, with sentiment towards French equities particularly low.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Macro optimism is surging, with 23% of investors saying they expect a \u201cboom\u201d (above trend growth and inflation) compared to 1% one year ago. Meanwhile, 43% said they expect \u201csecular stagnation\u201d (below trend growth and inflation), down sharply from 88% one year ago&#8230;<\/p>\n","protected":false},"author":20,"featured_media":60694,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1809,1655,1657,1651,1437,1724,1999],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/60696"}],"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=60696"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/60696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/60694"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=60696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=60696"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=60696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}