The bullish bias of fund managers is clearly reflected in the low interest rates they have been sitting on. BofA has shown that interest rates are as low as 4.1%, which means that most of the existing investment is invested.
Fund managers around the world are on the brink of a covid-19 scourge, according to a recent study by Bank of America (BofA). Of the 194 fund managers surveyed by the World Investment Bank, 35 percent of respondents believe that inflation is now a major threat to markets. Currently, only 9% believe covid-19 is a major tail risk to investors. Although inflation is considered risky, 69% of respondents continue to rise sharply and expect further growth in the trend in line with their expectations of higher inflation.
The bullish bias of fund managers is clearly reflected in the low interest rates they have been sitting on. BofA has shown that interest rates are as low as 4.1%, which means that most of the existing investment is invested. Based on the moon, investors have moved to past cycles as a force. Stakes, REITs, banks, utilities and building materials have also seen positive changes in investor placement, according to the study. On the other hand, emerging markets, technology and goods have seen a bad trend. The division of the technology sector is the third lowest since 2006.
As U.S. funds reach higher and higher over and over again, fund managers continue to fund the S&P 500. 29% of respondents believe the S&P500 will be successful by 2021, down slightly from last month. Meanwhile, to get a mortgage yield, fund managers are of the opinion that when the yield is close to 2%, the stock market could see a correction.
In addition, research has shown that fund managers direct their portfolios to high-value stocks and those with high-quality profits. Smallcaps seems to be losing their light, with only 14% reaping in May, compared with 35% in March this year. Meanwhile, value continues to be the most popular trade. “48% of FMS investors think the value will exceed growth in the next 12 months. It continues to be the most popular thing for the past six months with the exception of small letters in February 2021, ”said BofA.
To get the latest excitement around cryptocurrensets, as many as 43% of fund managers say ‘Long Bitcoin’ has surpassed ‘Long Tech’ as the most complete trade. However, since the study, Bitcoin has dropped by at least 18%. Technology passed second place, followed by Long ESG, and then American short-term values.
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