Global investors are looking to buy up US
equities as they predict a year of low growth and low inflation in
2012, BofA Merrill Lynch’s monthly survey of fund managers has
found.
Almost two-thirds of the 190 institutional
investors that took part in the December survey said that 2012 will
be a year of below-trend growth and below-trend inflation.
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Investors displayed a preference for US and
emerging market equities, while 72% of the panel said the Eurozone
had the least favourable outlook for corporate profits.
Parallels with peers
Several private banks have made similar predictions in their
2012 investment outlook research (see PBI 279). UBS Wealth
Management recommended avoiding Eurozone equities in favour of ones
from the US, UK and emerging markets, in their 2012 investment
outlook.
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By GlobalDataDeutsche Bank Private Wealth Management have
also backed US equities to perform next year, while Barclays
Wealth gave an overweight rating to developed
equities and remained neutral on emerging markets.
Shoring up defences
Merrill Lynch’s December survey said that
investors have been consolidating defensive positioning in
equities, with global allocations to pharmaceuticals and staples
increasing in the past month.
In contrast, investors have reduced exposure
to growth and cyclical sectors such as technology, industrials and
discretionary.
UBS said that for the next year they too
prefer defensive sectors like consumer staples and healthcare.
