From Investing.com: 2024-04-16 14:41:02

Risk sentiment has surged to its highest level since January 2022, according to Bank of America’s monthly global fund manager survey. Global growth optimism and commodities allocation have risen significantly. Equity exposure is at a net 34% overweight, while cash holdings have decreased to 4.2%.

The survey reflects a shift in investor sentiment towards a stronger economy over the next 12 months. 78% believe a global recession is unlikely, with concerns focused on inflation and geopolitical issues. Key triggers for risk-off sentiment include unemployment, Treasury yields, and oil prices surpassing certain thresholds.

Investors are rotating towards materials, energy, industrials, and European markets while moving away from cash, emerging markets, and consumer staples. The “most crowded” trades are long Mag 7 and short China. Bullish sentiment prevails, but strategists warn of vulnerabilities to bad news.



Read more at Investing.com: Risk sentiment among fund managers highest since January 2022