Stock Investors Are ‘Ignoring The Macro’
The disconnect between investors' positioning in stocks and their outlook for the economy is growing.
That was the main takeaway from the September vintage of BofA's Global Fund Manager survey.
Global growth expectations have plummeted from 75% in June to just 13% this month, likely reflecting data disappointments (relative to consensus anyway) in the US, slowing growth in China and the "peak growth" echo chamber.
The net 13% read from the poll was the lowest since April of last year, and rep
My guess is this partly reflects investors’ expectations for seasonality.
In regard to the inflation topic, if infrastructure and the budget reconciliation process go as planned, it may well inspire additional uncertainty about inflation.
Fingers crossed, more impactful levels of inflation will not actually be realized in 2022. Recalling yesterday’s post (Failings and an Ungovernable Nation) as the Fed tap-dances with risk and the economy (hopefully) provides more hearty meat to sustain our people.
Any update on the BofA Bull/Bear indicator?
Basically “Neutral.” 5.8.