According to the latest reading of Bank of America’s popular funding survey, fund managers have been circling after a huge rally since March, but not chasing stocks.
Fund managers did not rotate regions, yet preferred the US in European, UK and emerging markets.
The net 18% are overweight which is not particularly high in the history of the survey.
Fund managers are particularly recessionary about the UK, where new concerns about Brexit are arising. A net 35% of Britons are underweight, the worst performing since March 2018.
Banks and energy stocks are still untapped, the survey found.
Strategists led by Michael Hartnett said the situation is a limitation of the S&P 500 Index SPX.
Between 3,300 and 3,600, and the cyclic rotation is still in its early stages.
For the first time since February, more investors say the global economy is in an early cycle phase rather than a recession.
Fund managers were also asked about bond markets, where yields are falling. According to 41% of panelists, a reliable vaccine is the most likely trigger for high yields.
The survey, conducted between September 3 and 10, had assets of $ 646 billion out of 224 panelists.
In early trading on Tuesday, the S&P 500 jumped 51% from its March lows, and the Tech-Heavy Nasdaq Composite Comp,
Has increased by 61%.