Fundies go barmy for bonds

BofA with the monthly survey.

The Nut: Fund Manager Survey (FMS)investors remain cautious on macro but turn bullish on interest rates; investor playbook for 2024 is soft landing, lower rates, weaker US$, large cap tech and pharma bull continues, avoid China and leverage; investors cut cash from 5.3%to 4.7%(2-year low), move to biggest bond overweight since Mar’09,flip to 1st equity overweight since Apr’22.

On Macro: investors expect weaker global growth (net-57%) but 74% predict soft or no landing at all (21% say hard landing); “short leverage” theme…CIOs tell CEOs to improve balance sheet (52%) rather than increase capex (21%) or stock buybacks(18%).

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About the author

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.