Findings from the latest BofA fund manager survey

  • Global growth expectations lowest since May 2021
  • First Fed rate hike expectations seen at February 2023
  • Equity protection at the lowest since January 2018; liquidity conditions viewed as the best since before the 2008 global financial crisis

If anything, this is more of a sentiment indicator and shows how the market is roughly positioned and well handled to receive any taper announcement by the Fed in the months to come. As mentioned before, the timeline for the moment fits with:

  1. Acknowledgment of (start of) taper discussions in September
  2. A formal taper announcement in November
  3. Tapering to likely begin in December

Of course, it all depends on further economic data in the weeks ahead and we'll be getting a big one today via the US CPI report later at 1230 GMT.