View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 15, 2012updated 04 Apr 2017 3:36pm

Steep rise in investor sentiment: Merrill Lynch

There has been a sharp rise in investor sentiment this month the Bank of America Merrill Lynch (BofA) survey of fund managers has found Only 15% of the 173 respondents said that growth would continue and are confident that the world economy will make solid improvements over the next year However Bank of America Merrill Lynch said that this was the largest number of positive responses since the emergence of the credit crunch in April May 2009.

By Lizabeth Davis

There has been a sharp rise in investor sentiment this month the Bank of America Merrill Lynch (BofA) survey of fund managers has found.

Only 15% of the 173 respondents said that growth would continue and are confident that the world economy will make solid improvements over the next year.

However Bank of America Merrill Lynch said that this was the largest number of positive responses since the emergence of the credit crunch in April/ May 2009.

BofA said that fund managers have increased allocations to equities, real estate and commodities following low numbers a month earlier when the bank’s growth expectations composite rose from 37 to 49 a month later.

Risk on?

The US wealth manager said that investors are now keen to take risks again following sharp improvements in attitudes towards the economy.

Head of European equities strategy at BofA Merrill Lynch global research, Gary Baker said: “August’s surge in confidence seems to be more a triumph of policy projection and potential than positive economic data. As indicated by the survey, the risk is now that inaction by policy makers would lead to a negative reaction in global markets.” 

Panellists, who collectively manage $491bn, completed the global survey from 3-9 August 2012.

Related stories

Merrill Lynch 1H income up, revenue down

BofA net income, AuM up, revenue dips

BofA net income drops 40% in 4Q, up overall

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International