Just a couple of findings from the latest BofA fund manager survey:
- Investors stay bullish amid expectations for Fed rate cuts, soft landing
- 68% of investors anticipate a soft landing scenario
- 67% of investors expect no recession in the next 12 months
- Staying long in the "Magnificent Seven" is the most crowded trade still
- Geopolitics takes over as the top tail risk for investors, beating higher inflation
I reckon the final point is quite significant. It's a testament to the perception in markets that inflation is not as prominent a problem as it was in the months before. That said, stickier CPI readings could easily change that in the months ahead but we'll see. For now, the disinflation trend is still persisting albeit very gradually.
