{"id":37399,"date":"2023-07-18T17:14:04","date_gmt":"2023-07-18T21:14:04","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/fund-managers-remain-mostly-bearish-despite-rising-bets-on-a-soft-landing-for-the-economy-bofas-survey-shows\/"},"modified":"2023-07-18T17:14:06","modified_gmt":"2023-07-18T21:14:06","slug":"fund-managers-remain-mostly-bearish-despite-rising-bets-on-a-soft-landing-for-the-economy-bofas-survey-shows","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=37399","title":{"rendered":"Fund managers remain mostly bearish despite rising bets on a soft landing for the economy, BofA\u2019s survey shows"},"content":{"rendered":"
\n

Investor sentiment globally remained generally bearish in early July despite increasing bets that the world economy may achieve a \u201csoft\u201d economic landing and avoid a recession, while the rush to megacap technology stocks drove the stock market higher, according to the Bank of America (BofA) Global Fund Manager Survey.<\/p>\n

A broad measure of BofA\u2019s fund manager sentiment, which is based on cash positions, equity allocation and economic growth expectations, shows the sentiment is still \u201cstubbornly low\u201d and\u00a0not improving into the second half of 2023, said a team of investment strategists led by Michael Hartnett.\u00a0<\/p>\n

\n

The majority of surveyed fund managers expect a weaker global economic growth, while 48% predict the start of a global recession by the end of the first quarter of 2024. However, bets on a soft landing surge to 68% in early July, which is higher than the 21% expecting a \u201chard landing\u201d scenario and the 4% forecasting a \u201cno landing\u201d scenario (see chart below).\u00a0<\/p>\n

<\/p>\n
<\/p>\n<\/figure><\/div>\n

In the global central banks\u2019 fight against post-pandemic inflation, policymakers aim to achieve a soft landing, to use the metaphor of a pilot landing an aircraft, where the economy slows down just enough to control inflation, but avoids a recession. This is distinguished from a hard landing, in which the central banks rein in the economy too much to curb inflation and that leads to a recession. A no landing scenario involves the economy continuing to grow despite the policymakers\u2019 efforts to tamp down inflation with higher interest-rates.<\/p>\n

See:<\/strong> Recession? White House sees \u2018momentum\u2019 that will keep U.S. out of one.<\/p>\n

In other indicators of risk sentiment, expectations on earnings-per-share (EPS) are now the least pessimistic since February of 2022, and the global EPS forecast for the next 12 months rises a small 0.5%, said BofA strategists in a Tuesday note. <\/p>\n

Being \u201clong Big Tech\u201d is now the most crowded trade, with 42% of polled investors saying the widespread adoption of artificial intelligence (AI) will increase corporate profits over the next two years, and merely 1% said it will create more jobs, according to the BofA survey.<\/p>\n

Fund managers now see the Federal Reserve cutting U.S. interest rates in the second quarter of 2024. Fed funds futures traders Tuesday see a 36% chance that the Fed\u2019s main policy rate target will drop to between 5% and 5.25%, or even lower, in January 2024, according to the CME FedWatch Tool.\u00a0<\/p>\n

U.S. stocks finished higher on Tuesday as investors digested better-than-expected corporate earnings. The Dow Jones Industrial Average
\n DJIA,
\n +1.06%<\/bg-quote>
\n jumped 366 points, or 1.1%, to end at 34,951. The S&P 500
\n SPX,
\n +0.71%<\/bg-quote>
\n was 0.7% higher, while the Nasdaq Composite
\n COMP,
\n +0.76%<\/bg-quote>
\n advanced 0.8%.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investor sentiment globally remained generally bearish in early July despite increasing bets that the world economy may achieve a \u201csoft\u201d economic landing and avoid a recession, while the rush to megacap technology stocks drove the stock market higher, according to the Bank of America (BofA) Global Fund Manager Survey. A broad measure of BofA\u2019s fund […]<\/p>\n","protected":false},"author":1,"featured_media":37400,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-37399","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nFund managers remain mostly bearish despite rising bets on a soft landing for the economy, BofA\u2019s survey shows | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Investor sentiment globally remained generally bearish in early July despite increasing bets that the world economy may achieve a \u201csoft\u201d economic landing\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=37399\" \/>\n<meta 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