Aug 13 2024: Investors shifted their strategies in August, increasing their cash holdings and reducing their overweight positions in stocks, as global growth expectations fell to an eight-month low, according to a Bank of America (BofA) survey released on Tuesday.
Key Findings from the Survey
The survey revealed that 31% of respondents were overweight in stocks for August, a decrease from 51% in July. Meanwhile, the average cash allocation among fund managers rose to 4.3% of assets under management, up from 4.1% the previous month.
Reasons for the Shift
BofA attributed the shift to weaker-than-expected U.S. payrolls data for July and the market volatility following the yen’s rebound.
Survey Details
The survey included 189 participants managing $508 billion in assets.
Economic Outlook
A net 47% of respondents anticipate a weaker global economy over the next year, marking a significant decline of 20 percentage points from July.
