We just put out a summary of the monthly Bank of America “Global Fund Manager Survey.” This month, they surveyed 205 institutional managers with about $482B assets under management. Here are five key takeaways for traders, remarks Tom Hayes, editor of HedgeFundTips.
1) The most bullish development for 2025 remains China’s growth acceleration.
2) Managers view US equities as the most overvalued since at least 2001.
3) The Euro Stoxx Index is now expected to be the top-performing equity index in 2025.
4) Managers’ cash levels just dropped to 15-year lows.
5) Managers remain dramatically underweight Materials and Energy.
As for market sentiment, the NAAIM (National Association of Active Investment Managers) Index ticked down to 75.6% this week from 84.9% equity exposure last week. The CNN “Fear and Greed Index” ticked up from 44 last week to 49 this week.
