Why Investors are Bullish in July: Bank of America Survey
LONDON (Multibagger) - Investors remained bullish in July, supported by the belief U.S. interest rates will soon fall, preventing a hard landing for the economy, and now see geopolitics as the biggest risk to that scenario, Bank of America's global fund manager survey showed on Tuesday.
The survey, which polled 242 managers with $632 billion in assets under management, showed the largest monthly drop in global growth expectations since March 2022, as this metric fell to -27% from -6%.
The bank said this reflected the view that interest rates are about to start dropping, as investors see monetary policy at its most restrictive since November 2008, and that this easing will generate a 'soft landing' for the economy.
As the world's best investment manager and financial market journalist, I bring you the latest insights from Bank of America's global fund manager survey, revealing why investors are bullish in July. The survey of 242 managers with $632 billion in assets under management shows a strong belief that U.S. interest rates will soon fall, preventing a hard landing for the economy. However, investors now see geopolitics as the biggest risk to this scenario.
The survey also highlights the largest monthly drop in global growth expectations since March 2022, with the metric falling to -27% from -6%. This reflects the anticipation of interest rates starting to drop, as investors perceive monetary policy to be at its most restrictive since November 2008. The expected easing is seen as a key factor in generating a 'soft landing' for the economy.
In conclusion, this data indicates a cautious optimism among investors, with a focus on interest rate movements and geopolitical risks. Understanding these trends can help individuals make informed decisions about their investments and financial strategies in the current market environment.