Risk Is Back On as Investors Fear Missing Out on Stock Rally

(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.After sitting on the sidelines for most of the year, investors are now rushing to the equity market, afraid of missing out on the brisk rally amid increased optimism about global growth, according to a survey of fund managers by Bank of America Corp.Expectations for a worldwide economic recovery surged by a record amount at the start of November compared to October, according to responses from participants that oversee a total of $574 billion. Cash levels plunged to the lowest since June 2013.“The bulls are back, global recession concerns vanish and ‘Fear of Missing Out’ prompts wave of optimism and jump in exposure to equities and cyclicals,” said BofA strategists led by Michael Hartnett.The S&P 500 surged to a record high and global equities rallied at the end of October as optimism on trade and growth fueled appetite for riskier investments. The mood was also reflected in the survey’s asset selection, as investors sold more defensive stocks, such as utilities and staples, as well as bonds and turned to value shares, banking and euro-area equities.The survey shows that allocation to U.K. equities has strongly improved on easing Brexit concerns, with global fund managers now 21% underweight on the country’s stocks, from 32% underweight in the October poll.The survey took place between Nov. 1 and Nov. 7 and 178 participants responded to the global poll.\--With assistance from William Canny.To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.netTo contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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