Global growth expectations improve after Donald Trump's election victory, potentially paving the way for U.S. stocks to become the best performing asset in 2025, Bank of America's November global fund manager survey finds. Among currencies, the dollar is expected to outperform next year, while investors see sterling as overvalued and the euro as undervalued. The following is a selection of the survey's findings.
Russell 2000 Seen Outperforming After U.S. Election
1257 GMT - The Russell 2000 is expected to be the best-performing equity index in 2025 after Donald Trump won the U.S. presidential election, Bank of America's November global fund manager survey shows. Some 35% now expect the U.S. small-caps index to outperform next year. The survey shows 28% of respondents expect the tech-heavy U.S. index Nasdaq to outperform followed by MSCI Emerging Markets at 15%. After the election, more investors are overweight on U.S. equities at 29% from 10% in October, the survey says. Allocation to emerging-market stocks rose to 35% overweight from 21%. (renae.dyer@wsj.com)
Euro Considered Undervalued, Sterling Overvalued in BofA Survey
1223 GMT - A higher proportion of investors consider the euro to be undervalued while sterling is now viewed as overvalued by some, according to Bank of America's November global fund manager survey. The survey shows 8% of investors say the euro is undervalued, up six percentage points from October. Sterling is considered overvalued by 5% of respondents in the latest survey, up 14 percentage points from a month ago when 9% said it was undervalued. (renae.dyer@wsj.com)
'Long Magnificent 7' Is Most Crowded Trade, BofA Survey Says
1137 GMT - 'Long Magnificent 7' remains the most crowded trade in November at 50%, up from 43% in October, Bank of America's November global fund manager survey says. 'Long gold' is the most crowded trade for 28% of investors and 'long U.S. dollar' is according to 7%, the survey says. The 'Magnificent 7' stocks are Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. (emese.bartha@wsj.com)
Higher Inflation Is Main Tail Risk, BofA Survey Says
1127 GMT - Investors in Bank of America's November global fund manager survey view higher inflation as the main tail risk. This month, 32% of investors see it as the biggest tail risk--a scenario that is unlikely to happen but could cause losses to investors if it does--which is up from 26% in October, the survey says. Concerns over geopolitical conflict took second place at 21%, down from 33% last month. (emese.bartha@wsj.com)
Global Growth Expectations Improve in BofA Survey After U.S. Election
1011 GMT - Global growth expectations improved after Donald Trump's victory in the U.S. presidential election, Bank of America's November global fund manager survey says. Some 23% of respondents now expect a stronger global economy in the next 12 months, up from 10% in October and the most optimistic since August 2021, according to the survey. The probability of a soft landing for the global economy--where inflation falls without a material economic slowdown--fell to 55% after the election from 76% in October. The proportion of investors expecting 'no landing'--where the economy continues to expand and inflation remains elevated--rose to 33% from 14% last month. (renae.dyer@wsj.com)
Inflation Expectations Rise Post-U.S. Election, BofA Survey Says
1007 GMT - Global inflation expectations pick up in November, according to Bank of America's November global fund manager survey. For the first time since August 2021, investors forecast higher inflation in the next 12 months, the survey finds. Post-U.S. election results show net 10% of investors expect higher inflation, it says. (emese.bartha@wsj.com)
U.S. Stocks Seen Top Performing Asset Next Year, BofA Survey Says
1004 GMT - U.S. stocks are expected to be the best performing asset class in 2025, Bank of America's November global fund manager survey finds. Post-election results show that 43% of respondents expect U.S. stocks to perform best, followed by global equities at 20% and gold at 15%. (emese.bartha@wsj.com)
China Growth Acceleration Would Be Most Bullish Development in 2025, BofA Survey Says
0958 GMT - The most positive development in 2025 would be growth acceleration in China, the Bank of America global fund managers' survey for November shows. A 43% share of investors in the survey ranked China growth as the most bullish development in 2025. The second most positive development is the U.S. tax cuts, listed by 21% of investors. AI productivity gains were ranked the third most bullish development in 2025, as per 18% of investors. (miriam.mukuru@wsj.com)
Dollar Expected to Outperform in 2025, BofA Survey Says
0942 GMT - The dollar is expected to outperform in 2025 after Donald Trump's U.S. presidential election victory, according to Bank of America's November global fund manager survey. The survey says 45% of post-election respondents expect the dollar to outperform. That compares with 28% of investors expecting gold to outperform, followed by the Japanese yen at 20%. Meanwhile, 51% of fund managers consider the dollar to be overvalued, up five percentage points from a month ago. The dollar has strengthened on expectations that Trump's proposed policies, including trade tariffs, will lift inflation and prompt the Federal Reserve to cut interest rates by less than previously anticipated. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
November 13, 2024 08:28 ET (13:28 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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