Large number of fund managers fear markets 'overvalued'

Pandemic second wave remains biggest tail risk

Jenna Brown
clock • 1 min read

Growth expectations are jumping while cash levels are collapsing, according to the latest Bank of America Merrill Lynch (BofAML) Fund Manager Survey, however, the highest number of managers since 1998 believe the stock market is "overvalued".

The BofAML June survey said while risk appetites were surging and Wall Street was "past peak pessimism", large numbers of managers surveyed thought markets were overvalued and polled a 'BofA Bull & Bear Indicator' of 1.1. It also revealed just 18% of respondents expected a V-shaped recovery versus 64% who expected a U- or W-shaped bounce back, and while 37% said "it is a bull market", a 53% majority still say "it is a bear market rally". The survey of 212 panellists with $598bn assets under management found the biggest tail risk remains a potential second wave of Covid-19. Led by i...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read
Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read
Bank of England halts interest rate cuts amid ongoing inflation

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read