BofA ML sees fund managers most bearish in two years

Written by fe Bureau | Mumbai | Updated: Oct 15 2014, 07:43am hrs
Sentiment among global fund managers turned most bearish in two years in October, according to a Bank of Merrill Lynch survey. Allocation to equities fell sharply to 34% compared with 47% last month.

While 33% of the polled investment experts expect European Central Bank (ECB) to commence quantitative easing measures by first quarter of 2015, almost half of the universe (49%) see US Federal Reserve to raise interest rates in the second quarter of the coming calendar year. Allocation to US equities jumped to a 14-month high even as that to eurozone equities fell to 15-month low. EM equities saw first underweight rating in five months. The survey found that expectations on growth and profit fell to two-year and 18-months low, respectively, even as just 8% forecast global recession.