Home / Business / Money / Risk assets may correct; US dollar to outperform: BoAML

Risk assets may correct; US dollar to outperform: BoAML

Eighty six percent respondents see the US dollar strengthening further against the euro and yen. The green back is expected to be the best performing currency over 12 months, it adds.

The News International Team

Bank of America Merrill Lynch Global Fund Manager Survey for September reveals that cash levels have dropped sharply from 5.1 percent to 4.6 percent, but remain too high for a big correction in risk assets in the near-term.

The survey also highlights that fears of rate hike by the US Federal Reserve have receded in September compared to August. Fourty eight percent respondents expect the Fed to hike rates in Q2FY15 versus 38 percent in August.

The survey reveals bullishness on US dollar hitting a record high. Eighty six percent respondents see the US dollar strengthening further against the euro and yen. The green back is expected to be the best performing currency over 12 months, it adds.

As far as the global investor positioning on sectors is concerned, investors have increased weightage in materials, energy, technology and discretionary sectors. On the other hand, they have reduced weightage in banks. Country-wise, they have trimmed exposure to Japan, US and UK.

Further, the commodities segment emerged as the least crowded trade, especially as oil is now perceived to be most undervalued since July 12. Most crowded trades according o the survey include long US HY bonds, long EU peripheral debt and long US dollar.

The Bank of America Merrill Lynch Global Fund Manager Survey is released on a monthly basis. The survey was conducted among 202 fund managers.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...