Macro optimism is surging, with 23% of investors saying they expect a “boom” (above trend growth and inflation) compared to 1% one year ago. Meanwhile, 43% said they expect “secular stagnation” (below trend growth and inflation), down sharply from 88% one year ago...
“Investor allocation and positioning continue to reflect expectations of a higher US dollar. A more hawkish stance by Janet Yellen at this week’s Humphrey Hawkins testimony could provide an upside catalyst for the dollar, given the dovish market pricing of rate hikes,” said Michael Hartnett, chief investment strategist.
Manish Kabra, European equity quantitative strategist, added that, “While global fund manager sentiment towards Europe improved slightly, there is an increased fear of European political risk, with sentiment towards French equities particularly low.”
Next Finance , February 15
BofAML’s February Global Fund Manager Survey was conducted Feb. 3-9; 210 panelists with $632bn AUM participated total. 175 participants with $543bn AUM responded to the Global FMS questions and 99 participants with $224bn AUM responded to the Regional FMS questions.
 Introduced this month, the BofAML Global FMS Macro Indicator is a year-on-year measure of investor inflation expectations, capex demand, risk appetite, sector positioning and equity vs. bond positioning.
The recent CTA performances encourage institutional investors to more closely monitor this type of hedge fund. Thus, according to Preqin, 52% of them wish to increase their exposure to this type of alternative strategy this year (vs 14% last (...)