Merrill Lynch Fund Manager Survey: “Optimism over global economic recovery has been dented – asset allocators have scaled back equity holdings – overweight in European equities reaching six-year high.”
“- A net 71 percent expect the economic growth to remain “below trend” in the coming 12 months, up from a net 61 percent a month ago.
– A net 49 percent of global asset allocators are overweight equities, down from a net 60 percent in September. At the same time, investors have shifted back towards fixed income, scaling back their underweight positions in bonds and portfolio cash levels rose.
– A net 46 percent of asset allocators are overweight European equities, up from a net 36 percent September and representing the highest reading since 2007.
– In August, a net 55 percent of European respondents to the regional survey said double-digit growth was unlikely in the following year. This month, a net 6 percent says that double-digit earnings growth is likely – a two-month swing of 61 net percentage points.”