Fund Managers Becoming More Bullish Amid Predictions Of At Least Four Rate Cuts In 12 Months

Global fund managers are the most bullish they have been since February, with low cash levels of 3.9% and equity allocations that are at a seven-month high. In its September Global Fund Manager Survey, Bank of America also found that 47% of the fund managers surveyed expect four or more interest-rate cuts from the Federal Reserve over the next 12 months.

Fund managers become more optimistic

The firm also reported a sizable increase in optimism around global growth and a falling risk of a recession from a trade war. BofA’s broadest sentiment measure according to cash levels, equity allocations and global growth expectations jumped from 4.5 to 5.4 in September.