Global investors are likely to keep pumping money into record-hitting stock markets, according to a survey by Bank of America Corp.
Answering a question about the asset class that would benefit most from a reallocation of money-market funds, 32% of respondents opted for US stocks. Another 19% said the cash would go into global equities, while a quarter of the respondents indicated they would buy government bonds.
The survey — conducted from June 7 to 13 and canvassing 206 participants with $640 billion in assets under management — showed investors remained the most bullish since November 2021, with cash levels in money-market funds at a three-year low. Cash funds currently have about $6.1 trillion in assets, according to data compiled by Bloomberg.
Long bets on the so-called Magnificent Seven technology behemoths such as Microsoft Corp. and Nvidia Corp. now stand at 69% — among the most single crowded trades in history, the survey showed.
US stocks have rallied to all-time highs, driven by the buzz around artificial intelligence as well as optimism that the prospects for easing inflation would allow the Federal Reserve to cut interest rates this year. A 15% rally in the S&P 500 this year has lifted the benchmark’s forward 12-month price-to-earnings ratio to 21, well above a long-term average of 16, according to data compiled by Bloomberg.
Still, the valuations haven’t deterred a range of Wall Street strategists, including at Citigroup Inc. and Goldman Sachs Group Inc., from turning even more bullish on the outlook for the S&P 500.
Bank of America’s poll showed 41% of fund managers expect large-cap growth stocks to continue to drive the US rally. Big tech has contributed nearly three quarters of the S&P 500’s rally this year, with Nvidia alone driving 34% of the gains, according to data compiled by Bloomberg.
Using artificial intelligence can have benefits for both advisors and their clients, according to new research.
Broker-dealers that sold the defunct securities backed by Inspired Healthcare generated more than $100 million in fees and commissions.
FINRA barred the advisor, Sung Moo Cho, last month.
A new MetLife survey finds real estate professionals are increasingly steering clients toward tax experts as rising property values leave more sellers facing significant capital gains.
The independent broker-dealer expands its business development bench with a new recruiter and an internal promotion in the West.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
