Global Fund Manager Survey Highlights Market Shifts
The Bank of America Global Fund Manager Survey, conducted before the US-China trade truce and reported on May 15, 2025, shows fund managers at a net 13% underweight in equities, 1.4 standard deviations below average, and 38% underweight in US equities, the most since May 2023.
With 26% overweight in cash and 4.5% cash levels, a risk-on rotation is likely.
India, at 42% overweight, was Asia-Pacific’s top pick, but rising China optimism (6% overweight) suggests a potential rotation.
Contrarian bets favor US stocks, emerging markets, small caps, and energy, with downside risks for gold and utilities.
Despite a modest rebound expected, lingering tariff uncertainties may limit the rally’s extent.
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