Seventy-two per cent of fund managers responding to a survey said inflation is transitory, while 23% said it is permanent and 68% don't expect recession until 2024 at earliest, said a new BofA Global Research report.

The BofA Global Fund Manager Survey (FMS) shows growth & EPS expectations have peaked but investors say investment cycle transitioning from early to mid-cycle.

About 63% of fund managers expect Fed to signal taper August/September, while US infrastructure hopes dip to $1.7 trillion, while expecting a steeper yield curve, the lowest since Aug'20.

The FMS showed cash levels were down to 3.9% from 4.1%; BofA Bull & Bear Indicator at 6.5; 57% say any equity correction likely less than 10%; inflation/taper tantrum tied for #1 tail risks.

Allocation to bonds at three-year low (net -69%), to stocks back up to YTD highs (61%), to commodities high & steady (27%); note long commodities overtakes long Bitcoin as most "crowded trade", the FMS showed.

Tech saw largest June jump in exposure, while defensives exposure cut again, the FMS showed, highlighting that value stocks & tech stocks are expected to perform best in the next four years. – TradeArabia News Service