Global Fund Manager Survey

The May BofA Global Fund Manager Survey shows investor sentiment hitting a three-year high, marked by a record jump in equity allocations and a drop in cash levels to 3.9%. However, this extreme bullishness has triggered contrarian sell signals as 'long semiconductors' becomes the most crowded trade and inflation risks resurface.

Key Takeaways

• 1.Equity allocation saw a record monthly surge to net 50% overweight, the highest level since January 2022.
• 2.Average cash levels dropped from 4.3% to 3.9%, triggering a contrarian BofA FMS 'sell signal' for global equities.
• 3.Inflation has replaced geopolitical conflict as the #1 tail risk, with 40% of investors citing a second wave of inflation as the primary threat.

Table of Contents

• Bottom Line
• Notes to Readers
• How to join the FMS panel
• Charts of the Month
• Investors on Macro
• Investors on AI, Policy and Risks
• FMS Asset Allocation
• Currencies extremes
• Investor Regional Equity Allocation
• Investor Sector Allocation
• Global survey demographics data
• Disclosures

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