The BofaML fundie survey was out overnight and as always makes great reading:
• Investors are well-hedged but not positioned for a trade deal breakdown, and the full “risk-off”…rising recession risks, Fed cuts, GT10 <2%, SPX <2600, CNY >7.
• FMS #1 tail risk = “trade war”…no surprise given survey taken May 3rd-9th; but trade war concerns well below levels of last summer (see Exhibit 8). • FMS investors buying portfolio hedges hits record 34%; investors well-protected into correction.
The full text of this article is available to MacroBusiness subscribers
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
