Fund managers are shifting investments from US to Eurozone equities, while gold prices surge.

From Investing.com: 2025-03-24 09:25:00

According to the Global Fund Manager Survey by BofA, there has been a significant shift in investor sentiment with a sharp decrease in US equity allocation and a notable increase in Eurozone equity allocation.

The Federal Reserve has decided to keep its benchmark interest rate unchanged at 4.25%-4.50% but has raised inflation projections while lowering its growth forecast. The Fed also announced a reduction in its quantitative tightening program starting in April, leading to a rally in markets.

Deutsche Bank’s analysis shows that market corrections are not always indicative of an impending recession, with only 44% of corrections leading to an economic downturn. The question remains whether the current correction will result in a recession.

Despite a 40% surge in gold prices, allocations to precious metals ETFs remain low, indicating potential upside for the precious metal in the near future. The global gold market capitalization has reached a record $20.1 trillion, with gold prices hitting new all-time highs.

Bitcoin ownership is still low globally, with less than 4% of the population holding BTC. The United States leads in adoption rates, while Africa lags behind. Barriers to mass adoption include lack of education and high price volatility, leading some to prefer stablecoins in developing economies.



Read more at Investing.com: Fund Managers Are Betting Big on Europe as US Equity Allocations Plunge