BofA-ML Fund Manager Survey

Survey shows while inflation is seen falling, mood is stagflationary; recession expectations highest since May 2020; global growth and profits at all-time lows, cash levels highest since 9/11 attacks

Inflation is now counted as the biggest risk for markets with 35 per cent of FMS investors agreeing to this, followed by taper tantrum (27 per cent) and asset bubble (15 per cent)

A BofA Securities' Fund Manager Survey for March suggests investor sentiment has collapsed on the back of the coronavirus, oil shock, recession, and debt default risk.

Global equity markets are most overvalued in the past 17 years, suggests a recent Bank of America-Merrill Lynch Fund Manager Survey for March, with a net 34% of the respondents agreeing to this. Despite this, allocation to equities in March hit a two-year high with a net 48% of the fund managers remaining overweight on the asset class. The current allocation is 0.8 standard deviation above its long-term average.Among regions, 81% of leading global fund managers think US is the most overvalued region; while a net 44% believe emerging market (EM) equities remain undervalued, followed by net 23% who think euro-zone equities are undervalued.An overall total of 200 panellists with $592 billion of assets under management (AUM) participated in the survey during March 10 - 16, 2017. 165 participants with $505 billion of AUM responded to the global fund manager survey questions (FMS) and 92 participants with $213bn AUM responded to the regional FMS questions.Investors identify higher interest .