BofA Survey Shows 4.1% Cash Allocations, Equity Overweight Cut to 38%
BAC•BofA’s survey shows fund manager cash allocations climbed to 4.1% from 3.9% while the Bull & Bear Indicator hit 8.9, signaling a technical sell but no major market peak. Managers cut equity overweight to 38% from 50% and trimmed tech exposure to 26%, while increasing allocations to banking stocks.
1. Global Fund Manager Survey Results
The June survey showed the Bull & Bear Indicator at 8.9 and cash allocations rose to 4.1% from 3.9%, triggering a technical sell signal but not marking a major peak in risk assets.
2. Defensive Portfolio Shifts
Fund managers cut global equity overweight from 50% to 38% and trimmed technology exposure to 26%, while increasing allocations to banking stocks and Japanese equities.
3. Key Risk Concerns
Respondents cited a potential second-wave inflation scenario as the leading market threat at 34%, followed by an AI bubble at 28%, with semiconductor long positions the most crowded trade at 80%.
4. Contrarian Investment Opportunities
Bank of America highlighted materials, Japanese equities and banking stocks as areas that could offer contrarian opportunities in the second half of the year.
