Global Fund Manager Survey
Wall Street finds its “safe space”
Key takeaways· Investors less bearish, but FMS "fear" yet to flip to "greed". Stock prices to rise further until bonds throw another tantrum
· Cash drops sharply: from 5.8% (15-year high) to 5.4%. Another sharp drop in FMS cash to <5.1% in Sep signals end of rally
· Central bank creation of "safe space" of low & stable rates = fresh optimism & FMS preference for deflation>inflation assets.
European Fund Manager Survey
UK unloved
Key takeaways· Sentiment less bearish as cash levels fall, but Eurozone equity allocations unchanged and UK still a contrarian buy
· Muted EU growth outlook despite many feeling that monetary policy is too stimulative; most see room for fiscal boost
· No pro- or anti-cyclical sector bias with Autos and Healthcare most preferred; Basics most underweight