Investor sentiment no longer "apocalyptically bearish"

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A man walks near a Bank of America branch in New York’s Times Square Decemeber 11, 2008. REUTERS/Brendan McDermid/File Photo

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LONDON, Aug 16 (Reuters) – Investor sentiment is still bearish but no longer “apocalyptically” so, according to BofA’s monthly survey of global fund managers in August, as hopes rise that inflation and interest rates shocks will end in the coming quarters.

BofA, which polled investors overseeing $836 billion in assets, said on Tuesday that equity allocations remained negative at minus 26%, but that was an improvement on the lows of minus 44% in July, levels last seen in the 2008 global financial crisis.

Stocks have rallied in the past two months after a brutal first half of 2022, and BofA said August saw a big rotation into U.S stocks, technology and consumer shares while investors sold out of defensive stocks such as utilities and consumer staples and UK equities.

The share of uninvested cash in portfolios dropped to 5.7% from 6.1% in July, but remained “very high”, BofA said.

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Reporting by Lucy Raitano
Editing by Tommy Reggiori Wilkes

Our Standards: The Thomson Reuters Trust Principles.

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