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Investors are hoarding cash, according to Bank of America

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A cautious investor is worth two. This has been the thinking of many investors in the US who have increased cash because of the current geopolitical situation and inflation as you have highlighted Michael Hartnett, chief investment strategist at Bank of Americaaccording Brian Sozzi on Yahoo Finance.

“Russia/Ukraine brings the cash levels of the fund managers to the higher level as of April 2020 (COVID)electric optimistic global growth to lowest level July 2008 (Lehmann)“, said Michael Hartnett, chief investment strategist at Bank of Americain the latest survey of Bank administrators.

Hartnett points out that the growth expectations among fund managers are in a minimum of 14 years. Most of the respondents expect the sea ​​inflation “permanent”. In terms of risks, the war between Russia and Ukraine is considered the tail risk number one for the markets, closely followed by a world receipt.

Amid these risks, fund managers took their cash at 5.9% from 5.3% in the previous month. This was the highest signing to cash since March 2020.

“Cash levels are recessionary,” says Hartnett. One rare bright spot is that investors haven’t thrown in the towel completely on stocks.

Investors continue overweight in stocks, not underweight; stock allocations are not at ‘recessionary’ levels to close your eyes and buy,” Hartnett added.

However, the markets continue to reflect the multitude of concerns.

The Dow Jones and the S&P 500 are down about a 5% each so far in March, according to data from Yahoo Finance Plus. The Nasdaq Composite has a fall 6.2% in the month.

Jared Blikre of Yahoo Finance reports that the Dow and the S&P 500 they are in correction territory and the Nasdaq Composite is immersed in a bear market.

From their respective all-time highs, the Dow Jones is down one eleven%the S&P 500 is down a 13.5% and the Nasdaq Composite has lost a 22.5%.

“Bond markets are very concerned about growth prospects. That said, we are seeing bond markets nominal yields increase in all fields. Not only in the United States, but in all G-7 economies overallwhich tells you that I think many operators are concerned about the persistently high inflation“, He said DoubleLine Portfolio Manager Bill Campbell on Yahoo Finance Live.

Bank of America It closed the session on Monday at $41.20 in the green and the location of the moving averages, the 70 period above the 200 period, would give us a bullish signal. Meanwhile, the Ei indicators are mixed.

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