Stocks

Survey Says…Fund Managers Are Bearish On The Equity Markets

Bank of America Merrill Lynch surveyed 230 fund managers responsible for $645 billion in funds in the second week of June and they found a sharp increase in risk aversion.

The survey is the “most bearish survey of investor confidence since the Global Financial Crisis,” they write. “Pessimism driven by concerns over trade war/recession, monetary policy impotence and low strike prices for policy puts.”

The survey showed the second largest drop in equity allocation ever and global growth expectations fell by the most in a single survey since 1994.

On policy, they don’t see a Fed put until the S&P 500 hits 2430 with Trump cutting a deal with China at 2350.

The survey shows a “huge June rotation to bonds, cash, staples, utilities, and huge rotation away from equities, banks, Eurozone, tech” and that long US Treasuries is the most-crowded trade.

Source

So according to the fund managers, they aren’t expecting significant intervention until the the S&P 500 declines almost 20%.

That would be too late for me to react and position myself accordingly. Thus, the critical level that I’m monitoring is the 2700 level.

There also happens to be a weekly demand zone right below that 2700 level. Thus, a break below that zone, I will be shorting the Markets.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Related posts

Unusual Options Activity In Array BioPharma

rollandthomas

Nearly 200 CEOs just agreed on an updated definition of “the purpose of a corporation”

Mr. Crypto Lemon

$TSLA is CRASHING…Will Musk Get Margin Called?

heyimsnuffles

Get involved!

Comments

No comments yet
Skip to toolbar