Bulletin
Investor Alert

New York Markets Open in:

March 15, 2022, 8:23 a.m. EDT

Fund managers squirrel away most cash since COVID outbreak first hit West, survey finds

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    S&P 500 Index (SPX)
  • X
    S&P GSCI Index Spot (SPGSCI)

or Cancel Already have a watchlist? Log In

By Steve Goldstein

Fund managers have shifted the most into cash since the COVID-19 crisis first hit the West, according to a widely followed survey released Tuesday.

Cash levels surged to 5.9% in March from 5.3% after Russia’s invasion of Ukraine, Bank of America’s survey of global fund managers found, the highest level since March 2020.

Fund managers have moved into cash during other crises, too — as high as 8% during the dot-com selloff in 2001, and over 5% during both the global financial crisis of 2008 and the eurozone debt crisis in 2011 and 2012.

Like those other periods, expectations for both the economy and profit are deeply underwater. Global growth expectations plunged to their lowest level since July 2008. But with inflation expectations are elevated, fund managers are still overweight stocks.

“Equity allocations are not at ‘recessionary’ close-your-eyes-and-buy levels,” said analysts led by Michael Hartnett, chief investment strategist for Bank of America.

The allocation to commodities rose a record high 33% while a net 56% were underweight bonds.

Bank of America said 341 panellists with $1 trillion in assets participated in the March survey.

The S&P 500 /zigman2/quotes/210599714/realtime SPX +1.06% index has dropped three straight days and is down 13% from its record high in early January. A measure of global commodities /zigman2/quotes/210598561/delayed XX:SPGSCI -1.11% , however, has climbed 22% this year.

/zigman2/quotes/210599714/realtime
US : S&P US
3,825.33
+39.95 +1.06%
Volume: 2.20B
July 1, 2022 5:45p
loading...
/zigman2/quotes/210598561/delayed
XX : S&P GSCI
714.75
-8.03 -1.11%
Volume: 0.00
July 5, 2022 8:49a
loading...

Get news alerts on S&P 500 Index — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.