A Bank of America report revealed why the shares are still in the sights of some of the largest fund managers of Wall Street.
The Wall Street fund managers are increasing your exposure to actionseven when economic signals suggest a more unstable scenario, according to the latest Bank of America Global Fund Manager survey, published in September.
Specifically, the assignments in shares reached their higher level in seven months, While cash balances remained at 3.9%, a threshold that reflects caution but also lack of liquidity.
Wall Street is optimistic but not euphoric
The main strategist of Bank of America, Michael Hartnettwarned that optimism still does not translate into euphoria: for that, the cash should fall below 3.7% or the positions for variable income exceed 30%.
At the moment, 28% of managers raise global actionsreflecting confidence, although still far from an excess that has historically marked market ceilings.
This positive tone is exposed in the indices: the S&P 500 reached a new historical maximum on Monday and the Nasdaq chained six consecutive records. Signatures such as Wells Fargo, Barclays, Deutsche Bank and Yardeni Research raised their projections for the S&P 500 for the solid corporate gains and the rise of artificial intelligence.
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NYSE
It also influenced the expectation of the feat of fees by the Federal Reserve, which took place this Wednesday. In fact, almost half of the surveyed managers expects at least four cuts in the next 12 months.
The actions continue to face risks
However, risks persist. The rebound of Wall Street is still concentrated in the so -called “seven magnificent”, which generates doubts about its sustainability. In addition, 77% of managers anticipate a stagflation scenario, with weak growth, persistent inflation and upward unemployment.
This contrast led JP Morgan to talk about a “expansion without employment”, where labor weakness promotes expectations of rates cuts and supports stock assessments.
In parallel, consumer confidence in the US deteriorated, falling to minimums since May according to the University of Michigan, with expectations of upward inflation. Youth unemployment exceeded two digits and the newly graduated face more difficulties than the general labor force.
Although consumption remains firm and retail sales surprised up in August, economists warn that tariffs and political tensions could cool faster recovery than expected.
Source: Ambito
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