BofAML survey: Large number of managers fear markets 'overvalued'

Pandemic second wave remains biggest tail risk

Growth expectations are jumping while cash levels are collapsing, according to the latest Bank of America Merrill Lynch (BofAML) Fund Manager Survey, however, the highest number of managers since 1998 believe the stock market is "overvalued".

The BofAML June survey said while risk appetites were surging and Wall Street was "past peak pessimism", large numbers of managers surveyed thought markets were overvalued and polled a 'BofA Bull & Bear Indicator' of 1.1. BofAML survey: Number of fund managers expecting global recession in next year jumps It also revealed just 18% of respondents expected a V-shaped recovery versus 64% who expected a U- or W-shaped bounce back, and while 37% said "it is a bull market", a 53% majority still say "it is a bear market rally". The survey of 212 panellists with $598bn assets under managem...