The number of institutional investors taking “above normal” risk has risen to its highest level since January 2006, according to Bank of America/Merrill Lynch’s April survey of fund managers.

Michael Hartnett, the chief global equities strategist at BofA/Merrill Lynch Global Research described the thinking as a “Goldilocks scenario of above trend growth and benign inflation."

According to BofA's [BAC] survey, which was released Monday, more than half of institutional investors say that they are overweight in equities, up from 33% in February, and 71% of respondents expect corporate earnings to top 10% in the coming year.

At the same time, 42% of fund managers don’t expect a rate hike by the Federal Reserve until at least 2011.

 

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access