California Loans News

As signs of double-dip recession withdraw slowly, fund managers are shifting paradigms. Funds have been altered into equities with a transformed risk appetite. This has been according to the Bank of America (BofA) Merrill Lynch survey.

Net 65 percent of respondents saw that global recession would not be experienced in 2010. This data increased from 47 percent showed in last month’s survey. Other respondents comprising net 72 percent believe that corporate profits would also improve in the following months, higher than September’s 68 percent.

The survey conducted found out that fund managers’ risk appetite has been seen to be at its peak since April 2006. This is reflected from the overweight in equities of net 38 percent, another higher number from 27 percent in September. On the other hand, since January 2004, the data revealed that cash positions have decreased to a much low point. A net 7 percent underweight in cash was seen this month. September had a net 20 percent overweight in cash.

Survey participants, 30 to 49 percent, have been found to have positivism for the European financial stocks and confidence in the Chinese economy. “Equities remain in a sweet spot. Fears of a double-dip have receded, while worries about inflation and monetary tightening are not imminent enough to prevent an October surge in risk appetite,” chief global equity strategist Michael Hartnett of BofA Merrill lynch Global Research said. Bad news to real estate property owners, investors have not brought back confidence in most state markets. Investors are still much in favor of technology, energy and materials stocks instead.

Around 229 fund managers with $616 billion in assets under management were part of the global survey. Also, there was a total of 195 managers participated in the regional survey. These managers were handling $384 billion in assets.

Post a Comment