Macro and market optimism still ‘very high’, says BofA Merrill Lynch

by | Apr 13, 2021

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Macroeconomic and market optimism remains “very high”, according to the latest fund manager survey from Bank of America Merrill Lynch.
A ‘taper tantrum’ in bond markets, inflation and higher taxation are seen as bigger risks than the Covid-19 pandemic, the survey found. Only 15% of respondents cited Covid-19 as the biggest tail risk. Taper tantrum was the first risk, at 32%, while inflation was cited by 27% of respondents.

Asked whether Bitcoin was in a bubble, 74% of survey respondents said yes. However, only 7% thought US equity markets were in a bubble. Bank of America said 25% think we’re in an early-stage bull market, while 66% said it was a late-stage bull market.

The survey also found that 85% of fund managers are expecting global profits to improve over the next 12 months, down four percentage points but still near all-time highs.

Banks were the most overweight sector for first time since May 2018, Bank of America said.

The survey was carried out between 6 and 12 April.

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