Macro optimism surges as fund managers expect 'boom' period

BofA Merrill Lynch survey

The latest survey conducted by Bank of America Merrill Lynch has revealed optimism about the macro backdrop is on the rise, with 23% of fund managers expecting a "boom" in markets.

In its latest Fund Manager Survey carried out between 3 and 9 February, the group found 23% of respondents are expecting a "boom" period, signalled by above trend growth and inflation, compared to just 1% that thought this likely this time last year. Furthermore, the BofAML Global FMS Macro indicator, a year-on-year measure of investor inflation expectations, capex demand, risk appetite, sector positioning and asset class positioning, is in "buy" territory with cash levels dipping to 4.9% this month from 5.1% in January. However, managers were also concerned about potential bear marke...