BofAML survey: Global equity allocations fall to lowest since November 2016 on trade war fears

Sentiment bearish

Tom Eckett
clock • 2 min read

Investor sentiment is bearish this month, according to the Bank of America Merrill Lynch (BofAML) July Fund Manager Survey, as concerns grow about the rising threat of a trade war, a central bank policy error and a debt crisis in Europe or emerging markets.

The survey of 231 managers, conducted between 6 and 12 July, found allocations to global equities fell 14 percentage points (ppt) to net 19% overweight, the lowest level since November 2016. In particular, their eurozone equities allocation fell 8ppt to 12% overweight, the lowest level since December 2016, as fears around the Italian political situation and longer-term debt risks weighed on sentiment. Overall, net -11% of respondents predict faster global growth over the next 12 months, down 12ppt from last month and the lowest level since 11 February 2016 when the S&P 500 hit a low o...

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