Mubasher: Expectations for global growth rebounded as 23% of investors surveyed said the world’s economy is likely to improve within the next 12 months, according to Bank of America Merrill Lynch’s (BAML) monthly fund manager survey.
Around 48% of investors surveyed said that the current global financial policy is strict more than it should be.
Only 13% of investors said they expected the Bank of Japan and the European Central Bank's negative interest rate policy to end in the next 12 months.
Cash levels for investors dropped to 5.4% in August, from a 15-year high of 5.8%, the survey noted.
“We expect stock prices to rise further until bonds throw another tantrum,” according to Michael Hartnett, chief investment strategist at BAML.
“Within Europe, we prefer UK large-caps from both a positioning and macro perspective, as they benefit from weaker gross domestic product, lower yields and less European exposure," Manish Kabra, European equity quantitative strategist at BAML, said.
