BAML survey: More money moves into stocks


The summer bond crash has fund managers shuffling money into equities, according to the BAML fund manager survey, which shows those overweight stocks rising to 60% in September - the highest level since February 2011. Digging a little deeper finds exposure to consumer staples (XLP) is the highest in 10 years, to European stocks the highest in 6 years, and an 11-year high for U.K. equities (EWU).

European stock ETFs: EZU, VGK, FEZ, EPV, IEV, ADRU, FEP, FDD, UPV, EPV, DFE, FEU, FEEU.

Blogger ukarlewitz digs even deeper and finds the spread between equity and bond ratings is the 2nd highest in the 12-year history of the survey.

Undermining this apparent confidence, notes BAML's Michael Hartnett, are cash levels that remain "exceptionally high" at 4.6%. He reminds of the rule to buy stocks when cash is above 4.5%, and sell when it falls below 3.5%.

Broad fixed income ETFs: AGG, BND, LAG, SCHZ, BOND, SAGG, MINCGYLD, INKM.

Broad equity ETFs: IYY, VTI, EXT, TOTS, EUSA, ITOT.

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