BofA Survey Shows 40% Forecast Fed Hikes, Tech Exposure Cut to 26%
BAC•Bank of America's June Global Fund Manager Survey shows a Bull & Bear indicator at 8.9, signaling a technical sell, with 40% of managers forecasting Fed rate hikes over the next year and equity overweight trimmed from 50% to 38%, while tech exposure fell to 26% from 33%.
1. Fund Manager Survey Highlights
Bank of America’s June Global Fund Manager Survey recorded a Bull & Bear indicator reading of 8.9, entering a technical sell zone. Investor sentiment remains elevated but has not reached levels that historically precede major market tops.
2. Rate Hike Forecasts Surge
Forty percent of surveyed managers now expect Federal Reserve rate hikes within the next 12 months, up sharply from 16% in May, marking the highest pace of hawkish forecasts since September 2022. Macro growth and profit outlooks also hit three-month highs.
3. Portfolio Positioning Shifts
Managers pared global equity overweights from 50% to 38% and reduced tech allocations from 33% to 26%. Contrarian plays identified include long bonds, Europe and consumer stocks, while long semiconductors is the most crowded trade at an all-time survey high.
