Fund managers see a relative outperformance of bonds vs equities

  • One interesting finding of BofA’s fund managers’ survey: The net percentage of investors who would like to see companies improve balance sheets, as opposed to increase capital expenditures, reached the highest since Feb 2010. Historically, that typically points to the outperformance of global bonds relative to equities
  • So, it indeed appears to be that investors are preparing to hunker down and are lowering the risk profile in their portfolio.
    That is also seen in their view on the relative performance of equity styles: A net 64% expect high-quality to outperform low-quality, up from 55% last month. A net 1% expect high momentum stocks to outperform low-momentum, down from net 22% last month