Investors Bullish Stocks As This Long Bull Run Extends
$DIA, $SPY, $QQQ, $RTUX, $VXX
This longest Bull run on record has taken US stocks to record highs this year may be about to run further North, according to the latest survey of fund managers by Bank of America Merrill Lynch (BoAML).
Allocations to US stocks is + 10% this month to a net 19% overweight, the highest since January 2015, the survey said. That makes America the most popular equity region for the !st time in 5 years, according to the analysts.
For BoAML, the latest positioning across asset classes may be a topping indicator.
“With investors telling us they are long the US, the Fed and cash, our view remains: peak profits, policy and returns,” said BoAM’s chief investment strategist. “Rising corporate leverage concerns say bonds should outperform stocks, while a weaker profit outlook suggests defensives could outperform cyclicals.”
Safe-haven appeal has combined with a strong earnings season to keep the stock market of the world’s #1 economy attractive this year even as President Donald Trump’s trade curbs pose a threat to global economic growth.
Some 57% of respondents in the BofAML survey cited a trade conflicts as the biggest tail risk.
A net 67% of recipients said the US was the most favorable region for corporate profit expectations, the highest proportion in 17 years.
Long FAANGs remained the most-crowded trade identified by investors for the 7th month running.
Underweight positions on emerging markets are at around -1%, compared with an average of -27% during prior emerging-market crises, bank analysts said. The survey was conducted between 3-9 Auustamong 243 investors with a total $735-B under management.
Friday, the major US stock market indexes finished at: DJIA +110.59 at 25669.32, NAS Comp +9.81 at 7816.35, S&P 500 +9.44 at 2849.87
Volume: Trade on the NYSE came in at 765-M/shares exchanged
- NAS Comp +13.2% YTD
- Russell 2000 +10.3% YTD
- S&P 500 +6.6% YTD
- DJIA +3.8% YTD
HeffX-LTN’s Technical Analysis of the Major US Stock Market Indexes for the Week Ended 17 August 2018 is Bullish
Have a terrific weekend