BofAML's Fund Manager Survey Finds Global Optimism Declining

The video discusses the decline in global economic optimism, highlighting a six-year low in growth expectations and a pessimistic profit outlook, especially outside the US. It explores the shift in market sentiment from trade risks to concerns about a Chinese slowdown. The US market's decoupling from global trends is noted, with emerging markets underperforming. Investment strategies show a cautious tone, with high cash allocations and a preference for US equities. The video concludes with a discussion on contrarian trade opportunities and potential catalysts for market change.

What is the current major tail risk according to the survey?

• Middle East tensions

• European debt crisis

• Chinese economic slowdown

• US economic slowdown

How is the US market sentiment described in the survey?

• Pessimistic and cautious

• Declining and uncertain

• Neutral and stable

• Upbeat and positive

What is the current trend in cash allocations according to the survey?

• Fluctuating unpredictably

• Rising above the 10-year average

• Stable at the 10-year average

• Decreasing below the 10-year average

What is needed for the contrarian trade of long emerging markets to materialize?

• Increase in US interest rates

• Stabilization of the dollar

• Rise in European markets

• Decrease in global oil prices

What political event could act as a catalyst for emerging markets?

• De-escalation of the trade war

• Escalation of the trade war

• New tariffs on European goods

• US presidential elections