BofA: Investors withdraw from US and indicate strong hopes for China reopening in January

Collapse in US equities allocation

Valeria Martinez
clock • 2 min read

Global fund managers made their biggest drop in cash levels since June 2020 this month, while making the most radical rotation away from US equities on record.

According to the latest Global Fund Manager survey by the Bank of America, cash levels fell from 5.9% in December 22 to 5.3% this month.  This is still high given the 4.7% average since 1999, but the combination of expectation around peak rates and recession fears is causing the cash allocation to fall, BofA analysts said. Allocation to US equities collapsed in January, with respondents stating that their net underweight in the asset class stood at 39%, the highest since October 2005 (52%). This was the biggest month-to-month widening in net underweight on US equities since records...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Event Voice: Artemis' Cormac Weldon on the US

Event Voice: Artemis' Cormac Weldon on the US

Cormac Weldon looks into US markets.

Cormac Weldon, Head of US equities, Artemis Fund Managers
clock 18 November 2024 • 5 min read
Autumn Budget 24: Chancellor Reeves sets 20% IHT rate on AIM shares

Autumn Budget 24: Chancellor Reeves sets 20% IHT rate on AIM shares

Inheritance tax reform

Cristian Angeloni
clock 30 October 2024 • 1 min read
Partner Insight: Why investors shouldn't try to second-guess election results

Partner Insight: Why investors shouldn't try to second-guess election results

Investment Week
clock 28 October 2024 • 1 min read
Trustpilot