The Recession Is Over (According To Fund Managers, Anyway)
The "bottom line" among respondents to the October edition of BofA's closely-watched Global Fund Manager survey is that "the recession is over."
And that's not all. Other bottom-line takeaways include a penchant for cash reduction, a slightly less optimistic timeline for a vaccine, a "pause" in cyclical rotation expectations, and, of course, angst around the possibility of a contested US election outcome.
Recession expectations have "collapsed," the bank's Michael Hartnett wrote, noting that "
I guess these guys lose their jobs if the funds they manage don’t perform well compared to benchmark they are judged against. They kind of have to be all in.
4.4% cash. Jeez. If one of the respondents evaluated my portfolio, they’d laugh at me at the percentage of NAV cash I’m sitting on. (Cash and long bonds for the one, last trade.) The morning after the respondent stopped laughing, I’d start getting calls from every coiffed sell-side wannabe between here and the former IDS headquarters.
This survey response highlightsfor the umpteenth time a system disproportionately benefits some while dis-gorging vast swaths of our nation of their dignity and future prospects.
Your not alone. I have been 35 – 45 % in cash since end of February when covid first started. My daughter is an analyst at Vanguard and she despairs with me but at the moment i just can’t put all my life’s saving into this market (fed backed or not).
Ignore your daughter. A 60 – 40 portfolio is hardly ‘unusual’ at any time.