The bottom line in the Bank of America’s November survey of global fund managers is that they are so enthusiastic about equities and commodities that their positioning has become “a headwind not tailwind for risk assets”.
In addition, equities are poised for a further correction, BofA said – following the sell-off to start this month – if the Federal Reserve fails to cut interest rates in December. The probability of a rate cut stands at 50 per cent, down from more than 90 per cent a month ago.
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