Bank of America’s regular monthly survey of 227 global asset managers produced some interesting findings.
In the first half of January (the survey was conducted between January 8 and 15, i.e. before Greenland hit the headlines) they were quite optimistic and the most optimistic in almost five years. Almost half of respondents say they are not protected against a major drop in the exchange rate, the most since January 2018. Meanwhile, the level of cash reserves fell to a record low of 3.2 percent.
These are all signs that point to a high probability of a downward correction, reports SEEbiz. The main risk for asset managers is no longer related to a potential AI bubble, but geopolitical turmoil is what professional investors now fear most.
Bank of America’s January survey of global asset managers found, among other things, that their sentiment (based on various measures such as cash reserve levels, equity investment allocations and global economic growth expectations) is currently the most optimistic since July 2021.
