Bank of America's latest global fund manager survey - super bullish sentiment ...Middle East

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Bank of Americas latest global fund manager survey - super bullish sentiment

Bank of America's latest global fund manager survey finds that investor sentiment is "super-bullish" in December, reflecting a surge in optimism about economic growth and financial markets.

The survey highlights:

    Record-Low Cash Allocation: Investors have cut cash holdings to record lows.Record-High U.S. Stock Allocation: Allocation to U.S. equities has reached unprecedented levels.Global Risk Appetite: Risk appetite is at its highest level in three years, fueled by optimism surrounding U.S. President-elect Donald Trump's second term and expectations of a rate-cutting Federal Reserve.

    On the economic outlook:

    Soft Landing Most Likely: 60% of investors believe inflation will be reduced without significant economic slowdown.No Landing Gaining Traction: 33% expect a 'no landing' scenario, where the economy continues growing in an inflationary environment, marking an eight-month high.Hard Landing Unlikely: Only 6% foresee a 'hard landing'—a sharp slowdown or recession—representing a six-month low in pessimism.

    The findings signal widespread optimism that the economy can navigate inflation and growth challenges without significant disruption, reinforcing investor confidence heading into 2025.

    ***

    Anybody else wary when they read:

    "super-bullish"Record-Low Cash AllocationRecord-High U.S. Stock Allocation

    ?

    In answer to a question earlier this week, or maybe late last week, I said I was closing my eyes and staying long S&P 500. I've now taken to holding my nose as well.

    S&P 500 weekly candles

    This article was written by Eamonn Sheridan at www.forexlive.com.

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