Fund managers across the globe advise “sell the vaccine” in coming weeks or months as equities seem to be close to a “full bull”, according to the BofA Securities’ Global Fund Manager Survey.
The global equity markets rebounded on the back of improving macros, the U.S. election outcome and hopes surrounding a potential Covid-19 vaccine. Cash levels have declined to 4.1% in November from 4.4% in October and 4.8% in September, the survey of a total of 216 panellists with $573 billion assets under management showed. Cash level of less than 4% indicates greed and over 5% fear.
Global stocks surged after reports of a potential coronavirus vaccine sparked a rally in shares tied to an economic reopening. Countries across the world had imposed stringent stay-at-home restrictions to contain the spreading of the deadly pathogen, freezing economic activities and causing equities to tumble. While the economies gradually opened up as the pace of adding fresh infections eased a bit, the lack of a vaccine is a key overhang.
The panellists surveyed between Nov. 6 and 12 now expect a “credible vaccine” by January 2021 against their earlier forecast of February 2021. The global growth and profit optimism is also at a 20-year high, according to the survey, which BofA pegged as the most bullish in 2020.
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