BofA Survey: Money Managers Remain Pessimistic on Global Economy

Thursday, 20 Dec 2012 07:47 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Money managers are still bearish on the global economy, though sentiment is improving, according to the Bank of America Merrill Lynch Fund Manager Survey for December.

A net 40 percent of the 255 managers polled believe global growth will increase in the next year. While that number is nothing to write home about, it’s up from 34 percent in November and only 20 percent in October.

Money managers are much more enthusiastic about China’s economy, with a net 67 percent expecting its growth to accelerate next year, up from a net 51 percent last month.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

Despite that sentiment, these managers aren’t so hot on resources stocks, with the sector at its lowest allocation in four years.

"They're saying we feel good about the Chinese growth story, but they're not betting on materials stocks and energy," Kate Moore, BofA Merrill Lynch global equities strategist, tells CNBC.

That should make these stocks attractive for investors next year, she says.

As for the fiscal cliff, the proportion of managers who see it as the markets’ biggest risk dropped to 47 percent from 54 percent in November.

But Pimco CEO Mohamed El-Erian says that the U.S. economy will likely measure modest growth, even if the cliff is bypassed.

"If we avoid the fiscal cliff, which is our expectation, we're still looking at growth of 1.5 to 2 percent next year," he tells CNBC.

Editor's Note: Prophetic Economist Warns: “It’s Curtains for America.” See Evidence.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved