Fund Managers Overweight Global Equities

Global equities are benefiting from an increasingly positive outlook by investors, according to the latest BoA Merrill Lynch Survey of Fund Managers.Just over half of fund managers, 55%, say they’re overweight in global equities, the largest proportion since July 2007. Just last month, only 40% of fund managers said they were overweight in international stocks. The additional assets appear to have come from bonds—54% of fund managers are now underweight in bonds, from 47% in December.

A corresponding proportion of fund managers, 55%, expect the global economy to get stronger this year, and almost three fourths of fund managers expect inflation to rise. These factors create a “potent case for equity investment,” noted Gary Baker, head of European equity strategy at BoA Merrill Lynch.

Howard J. Stock writes for Bank Investment Consultant.

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