Global investors ending 2021 ‘risk-on’
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© Reuters. FILE PHOTO: Wall Street is a street sign seen in New York City (New York), U.S.A, January 3, 2019. REUTERS/Shannon StapletonMILAN (Reuters – The end of 2013 is approaching in a risk-on mood for investors. They have reduced their cash allocations, and increased their weight on U.S. stocks since August 2013. BofA Securities’ monthly survey to fund managers revealed that this was the case.
Although inflation remains the largest tail risk to markets, 61% believe that it is temporary and they expect the Federal Reserve not to keep up with the pace in setting its policy.
From 4.7%, cash allocations decreased to 4.4% last November. Also, it said that 37% of the trades were “long Tech Stocks”, followed by 21% (which a 59% majority believe is a bubble).
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