Following a historic rally from March lows, Bank of America Securities' latest Fund Manager Survey showed that a majority of the respondents believed a new bull market had started.
The survey, conducted between September 3 and 10, involved 224 managers with assets worth $646 billion under management.
Here are the key highlights of the survey -- shared by Chief Investment Strategist, Michael Hartnett:
Around 58% percent managers said that the market is bullish, compared to 25 percent in March. However, 29 percent were of the view that the market is still bearish. While 41 percent of those surveyed said that COVID-19 vaccine could trigger higher bond yields, 37 percent said that inflation would be responsible for higher bond yields.
On recovery, 37 percent said that it would be U-shaped or W-shaped and 20 percent said that recovery charts would be V-shaped.
Around 51 percent of fund managers preferred the balance sheet discipline, whereas 37 percent wanted increased capital expenditure as compared to 13 percent in April.
While most managers believed that a vaccine announcement would be made in the first quarter of 2021, some 32 percent were optimistic of an announcement in the Q4 of 2020.
Around 84 percent of the managers said they expected global growth to go up within the the next 12 months.
Hartnett (BofA said, "Fund Managers signalled they are 'paranoid tech' and have been decreasing their allocation to the sector in favour of more cyclical equities, such as cheaper value shares, small-caps, and industrials."