Here's some details from the latest Bank of America Merrill Lynch fund manager survey
BofAML have released their fund managers survey for November. Here are the highlights
Global survey
- Most vulnerable trade is long dollar
- Are sellers of SPX from 2050 to 2100 and DXY above 100. Say big EPS are needed for sustaining new risk highs
- Contrarian trade is long Emerging markets, short Eurozone. Long industrials, short banks. Long commodities, short real estate trusts
Asia and EM survey
- See Chinese improvement in next 12m, but positioning in EM's is at record lows
- 81% see Fed hiking in Dec
- USD is now top crowded trade
Japan survey
- Are still overweight Japanese stocks
- See earnings concerns fading and equities undervalued
- Japan second most overweight market
- Sector rankings are (top down) Cap goods, tech & autos, Real estate (overweight), banks last
Just some snippets but a look at what's in the mind of fund managers. It's an important look too as it's an indication of sentiment and where the flows may continue or start to happen. We can't move markets but these guys can
