Investors are in a risk-on mood and are snapping up stocks in Europe and emerging markets at the expense of the US and the technology sector, according to Bank of America Corp.’s latest fund manager survey.
Participants had the biggest jump in allocations to European equities since June 2020, and the biggest increase in allocations to developing-nation equities since April 2017, strategists led by Michael Hartnett wrote in a note. Financials were also in favor in the March survey, with the new risk-on preferences coming at the cost of US stocks and the technology and consumer discretionary sectors.
Fund managers are seeking more global exposure as the poll showed risk appetite reached the highest level since November 2021 and an economic soft landing remained the consensus view. Allocation to stocks is at a two-year high, but bullish positioning in the US is elevated, with the survey showing that being long on the Magnificent Seven group of US technology stocks is the most crowded trade.
Investors in the poll were split on whether or not artificial intelligence stocks are in a bubble, with 40% saying yes and 45% answering no.
The survey findings also highlight optimism about global growth expectations, which is at the highest in over two years, according to the poll. Investor bets on global markets have been paying off recently. European stocks have gained over the past eight weeks, outperforming the S&P 500. The MSCI Emerging Markets Index also outpaced the US benchmark’s gains over the same period.
The poll was conducted between March 8 to March 14, spanning 198 participants with $527 billion in assets under management.
AI-driven job fears are weighing on retirement confidence, especially among Gen Z and Millennials, Thrivent survey finds
It’s the second time in as many years regulators have penalized Centaurus Financial for lack of compliance with Reg BI.
AI Teammate is embedded within Wells Fargo’s Advisor Gateway desktop platform.
Elsewhere, Ameriprise added a $470 million Wells team in New York, while an ex-Morgan Stanley advisor bolsters UBS' Austin, Texas office.
Financial advisors play an essential role in helping small business owners navigate their transition out of the company — and into retirement.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
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