Bank of America’s monthly survey of 170 fund managers, conducted from September 4 to 10 and covering 470 billion dollars in assets, shows that net enthusiasm for global equities declined to 49% in September, from 56% in August. A disorderly rise in bond yields has become their primary concern, cited by 33% of respondents, pushing AI bubble fears to second place. Bond underweight positioning reached its highest level since May 2022, at 48%. Cash allocations slightly increased to 3.9% of portfolios, a level that does not yet trigger the contrarian buy signal historically associated with exceeding the 5% threshold. Additionally, 44% of managers anticipate a split Congress following the US midterm elections.
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