Bank of America's latest global asset manager survey finds that investor sentiment is “super-bullish” in December, reflecting an increase in optimism about economic growth and financial markets.
The survey points out:
- Low cash flow schedule: Investors have cut cash holdings to record lows.
- US Senior Stock Dividends: Allocations to US equities have reached unprecedented levels.
- A Taste of Global Risk: There is a risk appetite for it the highest in three yearsfueled by optimism about US President Donald Trump's second term and the prospects of a Federal Reserve rate cut.
On the economic scene:
- Soft landing most likely: 60% of investors believe that inflation will be reduced without a significant slowdown in the economy.
- No landing getting traction: 33% expect a 'no-landing' situation, where the economy continues to grow in an inflationary environment, marking the eight months high.
- Hard landing unlikely: only 6% expected 'landing' – a sharp recession or recession – represents a six months low in pessimism.
The results indicate widespread optimism that the economy can overcome inflation and growth challenges without major disruption, underpinning investor confidence heading into 2025.
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Anyone else beware when they read:
- “super-bullish”
- Low cash flow schedule
- US Senior Stock Dividends
?
In response to a question earlier this week, or maybe late last week, I said that I was closing my eyes and living long the S&P 500. I have now accepted hold my nose too.
S&P 500 weekly candles
