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...
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