Investors believe it’s a new bull market | Economic Times

Mumbai: Bank of America Securities’ latest fund manager survey showed more investors are now saying that a new bull market has begun.The survey, which took place between September 3 and 10 and saw 199 participants who together manage $601 billion, showed that 58% of fund managers believe that a new bull market has started compared to 25% who said the same in May. About 18% of fund managers surveyed are overweight equities but far from being dangerously bullish, said the BofA report. However, doubts over sustainability of the recovery have led to rise in cash levels to 4.8% from 4.6% in the previous months.Fund managers believe it is no longer a recession environment. For the first time since February, 49% investors say macro is in early cycle phase than a recession and a net 84% of those surveyed believe that global growth will rise in the next few months. The survey also showed that a net 61% of investors predict a U or W-shaped recovery compared to 20% who said there will be a V-shaped recovery.Moreover, a net 47% of fund managers surveyed believe global corporate earnings will rise 10% or more over the next 12 months — the highest reading since February 2011.Bullish bets on US technology stocks remain the most crowded trade of all time because of which the tech bubble has now become the second-biggest tail risk after Covid-19 second wave tail risk.In September, fund managers reduced allocation to technology, healthcare and large-caps and increased allocation to industrials.