REIT exposure at 'Lehman levels' as global sentiment surges in August
Exposure to REITs has dropped to its lowest since December 2008, leading to BofA describing it as one of the 'most fascinating' asset classes to watch.
Cash levels in portfolios have plunged to a 21-month low, falling from 5.3% to 4.8% in a month, as the survey reported its least bearish views since February 2022.
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Three in four managers now expect either a soft landing or ‘no landing', as 42% said recession was «unlikely» over the next year, the most since June 2022 and down from just one in ten in November last year.
Looking further ahead, 31% now expected no recession over the next 18 months, up from 19% in July and 14% in June.
Only 45% of managers were now expecting the global economy to be weaker in a year's time, down from 60% in July.
Equities weighting saw its biggest monthly increase since November last year, with managers now holding their largest weighting to equities since April 2022.
Tech has experienced a boom, with managers reporting the largest tech overweight since December 2021, with long Big Tech now viewed as the most «crowded trade».
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Meanwhile, exposure to REITs has dropped to its lowest since December 2008, leading to BofA describing it as one of the «most fascinating» asset classes to watch.
More generally, investors have been moving out of the US, EU and UK into emerging markets and Japan, while industrials and utilities fell out of favour in place of energy and tech.
Inflation was still seen as the biggest risk among investors due to its potential to keep central banks hawkish, even as 80% predicted global inflation falling over the next year.
However, the number of
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