It’s a bull market, according to 58% of participants in the Bank of America Global Research September fund manager survey, up from 46% last month and just 25% in May.
The survey was conducted Sept. 3 to Sept. 10 among 224 fund managers with $646 billion in assets under management.
For the first time since the February survey, more respondents said the global economy was in an early-cycle phase rather than in recession: 49% vs. 37%.
Net 84% of investors said they expected global growth over the next 12 months, up five percentage points from the August survey and the highest level since September 2003. Forty percent said it would get “a lot stronger,” the highest number ever, according to BofA.
Three in five participants predicted that the recovery would take either a U or a W shape, while just one in five maintained that it would be V-shaped.
Net 37% of fund managers, nearly triple the April figure, said they wanted chief executives to increase their capital expenditures, while 51% still insisted that corporate honchos spend cash on improving their balance sheets, down six points from August and down 27 points from the April peak.
Even so, BofA said, this shows that investors doubt the sustainability of the upturn. It said this led to a rise in their cash levels to 4.8% in September from 4.6% the previous month.