March 19, 2013
Appetite for Equities Remains High Despite China Concerns
Fund Manager Survey
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Fund Manager Survey Global
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Increasing confidence in the outlook for the U.S. dollar and U.S. equities is offsetting investors' renewed concerns over
, according to the BofA Merrill Lynch Fund Manager Survey for March.
This month registered the highest level of dollar bullishness in the survey's history. A net 72 percent of respondents now expect the U.S. currency to appreciate over the next year, a 30-point increase in a month. Bearishness on U.S. stocks has also reversed. A net 5 percent identify the U.S. as the regional market it most wishes to overweight, compared to January's net 19 percent underweight. The U.S. also offers the best outlook of any region for corporate profits by far, investors believe.
Against this background, investors remain positive on the global economy's recovery and continue to increase exposure to equity markets. A net 61 percent expects macroeconomic performance around the world to strengthen over the next year, a slight increase on last month's reading. A net 57 percent of asset allocators are now overweight equities, up from a net 51 percent in the two previous months.