The hidden schism in the BoA Fund Manager Survey

Mid-week market update: BoA published its monthly Global Fund Manager Survey (FMS) this week and the results were not a big surprise. In the last few months, the FMS had increasingly become a price momentum indicator whose readings were fairly predictable based on recent market trends. Respondent risk appetite was turning up after bottoming out in late 2022 and global managers were buying risk again.

Within their global equity allocations, managers were buying emerging markets (read: China) and eurozone equities and selling US equities, which is consistent with what I have observed in my relative return analysis.


Hidden beneath these obvious headlines is a far more cautious asset allocation positioning that are inconsistent with the macro outlook implied by the risk-on nature of the recent equity stampede. A schism is appearing between the how the asset allocators view the market and how equity managers view the market.
The full post can be found here.