RJ and Makay

Bearish sentiment among investors about the outlook for the global economy and corporate earnings has eased, according to the BofA Merrill Lynch Survey of Fund Managers for August. The survey found 78% of investors believe that a double-dip recession is unlikely, and 73% still expect below-trend growth and inflation.  The “spotlight of pessimism” has shifted to the U.S. and Japan, prompting a move toward Eurozone equities and a slight increase in Global Emerging Markets.

The survey results also found there has also been an increase in commodities holdings, reflecting the expectation that the Chinese economy may weaken. A majority of respondents (62%) believe that the yen is overvalued, and 23% of respondents believe that the dollar is undervalued, an increase from 3% the previous month. Below is a summary of the changes in holdings and currency outlooks, according to survey respondents: