Fund managers are becoming more defensive as they grow more pessimistic about the economy and corporate profits, according to the latest monthly survey by Bank of America.
Global fund managers have increased their holdings in health, insurance, utilities and cash, while reducing their exposure to materials, commodities, emerging markets and energy.
The survey found that expectations that the global economy would improve have fallen to 27% net, which is the lowest since April 2020; in March 2021, 91% expected an improvement. Profit expectations have also declined, with 41% net expected to improve profits, from a high of 89% in March and 53% in July.
For the first time since July 2020, investors expect margins to shrink.
Bank of America said it surveyed 257 members of the group who managed $ 749 billion in assets.
The S&P 500 SPX,
Monday ended in a record high for the fifth straight session, while TMUBMUSD10Y’s three-year Treasury yield,
fell to 1.26%.