Investors most bullish since February as they shun 'bear market rally' fears

W- or U-shaped recovery predicted

James Baxter-Derrington
clock • 2 min read

Investors are at their most bullish since February but are still predicting other forms of recovery over the V-shape, according to the latest global fund manager survey from Bank of America (BofA).

A net 46% of investors surveyed now say "it's a bull market" as opposed to a "bear market rally" (35%), while the BofA Bull & Bear Indicator has risen to 3.7, which is still "far from excess bullish". Despite the turn in sentiment, few investors anticipate a V-shape recovery (17%), with the W-shape (37%) and U-shape (31%) far ahead, and although conviction in early-cycle business cycle is still rising (31%), the majority (53%) still believe in recession. Investors still want companies to improve their balance sheets and reduce debt (57%) rather than expand capex (30%) and cash levels ...

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