{"id":63046,"date":"2017-05-17T01:00:00","date_gmt":"2017-05-16T23:00:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/bofa-merrill-lynch-may-fund-manager-survey-finds-investors-are-bullish-macro-expectations-of-high-growth-and-low-inflation-at-record-high\/"},"modified":"2017-05-17T01:00:00","modified_gmt":"2017-05-16T23:00:00","slug":"bofa-merrill-lynch-may-fund-manager-survey-finds-investors-are-bullish-macro-expectations-of-high-growth-and-low-inflation-at-record-high","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/bofa-merrill-lynch-may-fund-manager-survey-finds-investors-are-bullish-macro-expectations-of-high-growth-and-low-inflation-at-record-high\/","title":{"rendered":"BofA Merrill Lynch May Fund Manager Survey finds investors are bullish; macro expectations of high growth and low inflation at record high"},"content":{"rendered":"<ul>\n<li> Investors\u2019 macro expectations find global economy to be just right, with a record high 34% citing a Goldilocks scenario of high growth and low inflation <\/li>\n<li> China replaces European disintegration as the most commonly cited tail risk for the first time since January 2016, with 31% of global fund managers citing Chinese credit tightening as the biggest risk in the market<\/li>\n<li> Long Nasdaq is seen as the most crowded trade for the first time, knocking long U.S. dollar off the top spot after five months; despite this, net 23% of investors still say the USD is overvalued <\/li>\n<li> Profit expectations are at a three-year high as net 56% of respondents say global profits will improve over the next 12 months<\/li>\n<li> FMS cash levels remain unchanged from April at 4.9%, still above the 10-year average of 4.5% <\/li>\n<li> Investors\u2019 views on valuation continue to vary by region: net 82% of fund managers think the U.S. is the most overvalued region, near April\u2019s all-time high; meanwhile, Eurozone and EM equities are seen as undervalued, at net 20% and net 44% respectively <\/li>\n<li> Net 59% of investors are overweight Eurozone equities, up from net 48% overweight in April and the highest allocation since March 2015<\/li>\n<li> Allocation to UK equities rises to a net 27% underweight versus net 34% underweight last month <\/li>\n<li> Japan equity allocation fell for the second month to a net 12% overweight as investors increase their allocation into European equities<\/li>\n<\/ul>\n<p><em>\u201cInvestor sentiment is bullish,\u201d said Michael Hartnett, chief investment strategist. \u201cBut irrationality is not yet visible despite all-time highs in credit and equity markets, robust global EPS and a benign French election result.\u201d<\/em><br \/>\nRonan Carr, European equity strategist, added that, <em>\u201cAllocation to Eurozone equities is at its third highest level on record. The recent outperformance seems due for a pause, especially versus the U.S.\u201d<\/em><\/p>\n<p>Commenting on the Japanese market, Shusuke Yamada, chief Japan FX\/equity strategist said, <em>\u201cAlthough global investors\u2019 allocation to Japanese equities declined for a second month; easing risk factors, better currency levels, and fundamentals hint of a possible summer rally.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China replaces European disintegration as the most commonly cited tail risk for the first time since January 2016, with 31% of global fund managers citing Chinese credit tightening as the biggest risk in the market<\/p>\n","protected":false},"author":20,"featured_media":63044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1809,1655,1657,1651,1437,1999,1803],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63046"}],"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=63046"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/63044"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=63046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=63046"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=63046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}