Managers have least exposure to equities in a decade, says Merrill Lynch

High inflation fears have lead to fund managers taking their most negative stance on equities in a de...

High inflation fears have lead to fund managers taking their most negative stance on equities in a decade, according the latest fund manager survey complied by Merrill Lynch. In June managers were 27% underweight equities with 81% believing consensus earnings estimates for the next 12 months are too high. They have chosen to sell off equity and bond exposure in favour of cash with 42% overweight this asset class compared to just 31% in May. Karen Olney, chief European equities strategist at Merrill Lynch said: “The market is waking up to the idea that global interest rates are too low,...