Markets stocks

$574 Billion In AUM Pretty Sure Stocks Will Outperform Everything In 2020

That FOMO feeling again.

Fund managers know what the best performing asset class will be in 2020. Spoiler alert: It will be stocks. Or so says the collected wisdom of the 178 respondents (representing $574 billion in AUM) who participated in the November edition of BofA's closely-watched global fund manager survey which, as noted on Tuesday, has that "FOMO" feel to it. (BofA) As you can see, 52% say equities will be the top performer in 2020, which is in keeping with recently ebullient sentiment that's driven stocks to new record highs in the US, and pushed benchmarks into overbought territory even in recession-hit locales. The risk-on move has been accompanied by a sharp drop in cash levels, documented in the first linked post above. If you missed that on Tuesday, the chart is below. (BofA) Perhaps the most amusing bit from the November survey comes courtesy of the juxtaposition between Exhibit 7 above and the "most crowded trade" chart. As the bank's Michael Hartnett notes, fixed income came in last in the "what will be the best performing asset" contest, "despite long US Treasuries being the most crowded trade from Jun-Oct’19". (BofA) That's a testament to how quickly the tide can turn
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2 comments on “$574 Billion In AUM Pretty Sure Stocks Will Outperform Everything In 2020

  1. Franceska says:

    Wasn’t in mid October 800bn AUM saying it was already too late for the world economy and stock performance?
    Now they are bullish ….one month ago they were bearish. Then we wonder why their performance usually sucks and 75% of them can’t beat the spx

  2. Michael says:

    I must be completely off base (wrong) if that is the smart money as I have more tbills and cash as % since 1986.

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