Photo: ChinaFotoPress/Getty Images
These are interesting bullet points from a Bank of America fund manager survey.Fund managers…
- Are more optimistic on global growth: readings have improved for all of the economy, inflation and corporate profits.
- And this is down to optimism on China exploding – growth expectations at 3y highs!
- Are nevertheless more cautious about Europe: European growth expectations (net 10% seeing weaker growth in 2013 vs net 9% seeing stronger growth prev.) have de-correlated from global growth expectations in November
- Are still hating Japan: most contrarian regional trade
- Hedge Funds exposure to Equities rose to its highest (40%) since 2007.
- While a majority of investors (>70%) still believes that the US fiscal cliff is not priced into Equities – still #1 tail risk.
The Chinese optimism is very interesting.
This is a big theme we’ve been hitting on lately. Chinese sentiment is booming, US is fading.
Still, we’re surprised to see it characterised as “exploding.”
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