Fund managers make their biggest bets on U.S. stocks in 8 years as growth fears recede

Global fund managers were the most overweight to U.S. equities in eight years as their concerns over ebbing growth receded, according to the latest fund manager survey from Bank of America.

The allocation to U.S. equities jumped 13 points in November to 29% overweight — the highest reading since August 2013, the monthly survey found. These investors report being overweight U.S. equities since March 2019, which has continued to be a winning bet.

What’s interesting is the assembled fund managers say emerging market equities EEM, 0.15% will produce the best returns next year, by a 34% to 30% margin over the S&P 500 SPX, 0.58%.

Bitcoin BTCUSD, -6.20% was forecast to be the best asset next year by 12%, followed by oil CL.1, 0.04% and gold GC00, -0.77% at 10% each, and single-digit showings for short- TMUBMUSD03M, 0.050% and long-dated TMUBMUSD30Y, 2.014% Treasury securities.

Global growth expectations have stabilized. A net 3% expect improvement, compared to a net 6% who did not last month. In March, 91% expected improvement. Just 6% say there will be a recession in the next 12 months.

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