Money Managers Are the Most Underweight U.S. Stocks Since 2008
- Bank of America survey shows hesitancy to buy equities
- Nasdaq seen as most crowded trade; banks are most overweighted
S&P, Nasdaq Add to Record Highs on Strong Earnings
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Don’t look now, but money managers haven’t been this underweight U.S. equities since January 2008.
According to Bank of America Merrill Lynch’s most recent fund manager survey, allocations to U.S. stocks have reached 20 percent underweight. The last time that percentage was greater was in January of 2008, when the S&P 500 Index was near its previous peak before crashing during the financial crisis.