Fund managers most bullish since February - BofA ML survey

Fund managers were the most bullish in August they have been since before the Covid-19 pandemic in February, according to the latest survey from Bank of America Merrill Lynch.

The survey found that a net 46% of fund managers now think it's a bull market. Meanwhile, a net 79% said they expect higher growth - the highest level since December 2009. They also expect a vaccine announcement to come early in the first quarter of next year.

A net 57% are expecting global profits to improve over the next 12- months, up 21 percentage points and marking the best level since March 2017.

The survey also showed that equity allocation rose seven percentage points to a net 12% overweight.

Bank of America said asset allocation had been "stubbornly skewed toward US growth stocks". However, the August survey shows "green shoots" for inflation assets, a rotation to Europe and emerging market stocks, banks, small cap and value stocks.

As far as gold is concerned, a net 31% of fund managers said the yellow metal - which recently surged past $2,000 an ounce - is overvalued, up from zero last month and marking the highest level since 2011.