Cash will be reduced by: shares to be overvalued since 1998

The Corona-pandemic triggered market turmoil in the stock markets move in the minds of the investors. After the first sharp drop in Price of many shares have settled very quickly back significantly. However, the economic impact alone for the profits of the business are immense. In view of the strong rate rise many investors now look critically on the valuation of the shares, as a survey of Fund managers Bank of America shows. Therefore, so many of these system have to say to professionals as never before, that the shares were overvalued. Net do this a good three-quarters of the respondents – the value of the share of Fund managers are of this view exceeds that of all others. And hold the market for as high a rating as it has been since 1998.

Kerstin Papon

editor in the economy.

At the same time, the survey also shows that the respondents of 212 Fund managers, managing around the world 598 billion dollars (the equivalent of about 529 billion euros), are re-invested much more in the market than in may. The share of cash in their Portfolios has declined significantly, from an average of 5.7 percent in the previous month to 4.7 percent. This was the largest decline for more than a decade, says Bank of America. It would have been engaged primarily to institutional investors such as pension funds, focused funds on the market, whereas funds for private investors, a higher liquidity of the assets.

the Total is increased accordingly, also the risk appetite of the Fund Manager quickly, as well as the expectations of corporate profits and economic growth. Bank of America evaluates this optimism after the passing of the previous pessimistic summit as fragile, but nowhere dangerously close to a very positive "bullish" market evaluation. Because only 18 percent of respondents expect a quick recovery of the economy and a "V"-shaped course of the economy. Two-thirds of go instead of a "U" or "W"-shaped economic development, and thus a longer bottom. In April, a net 93 percent of Fund managers with a more pronounced recession, expected even. Currently, 46 percent do so.

Fund Manager reduced the portfolio of your Overweight

After all, a good third of the survey participants already in the midst of a bull market. More than half of the respondents Fund Manager believes itself to be in a rally within a bear market. At the same time has expanded the Exposure of hedge funds in equities. According to the survey, it is net a good third in April, to now more than 50 percent shot up. This was the highest value since September of 2018, the Bank of America.