Fund Managers Sour on Stocks Have Nowhere Else to Go, BofA Finds
- Global growth, earnings expectations slumped in September
- Equity allocation remains elevated, bonds are shunned: BofA
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The market faces a peculiar anomaly: fund managers are quickly souring on global growth and earnings amid a flurry of risks, but they refuse to give up on stocks, according to the latest Bank of America Corp. survey.
“Rare fund manager survey disconnect between asset prices and fundamentals is growing,” BofA strategists led by Michael Hartnett said in a note on Tuesday. “Growth expectations are saying equity allocations should fall, but risk taking is telling the story that investors are ignoring the macro.”