Fund managers most bullish since 2021 as inflation fears recede

Growing confidence in US economy

Fund manager sentiment has risen to its most bullish since November 2021, reflected by low cash levels and a large equity allocation across respondents.

According to Bank of America's monthly global fund manager survey, respondents said they expect global growth to remain unchanged over the next 12 months, with 53% stating they do not expect a US recession in the next 18 months. Only 8% predicted a recession in the second half of 2024, while 30% offered a 2025 recession bet. On rates, 8% of managers said they expect no Federal Reserve cuts in the next 12 months, while 78% expect at least two cuts to take place in the coming year, with the earliest forecast for September. Overall, only 5% of respondents expected a weaker economy in the...