14/06/2017
A record number of investors consider equities overvalued
BofA Merrill Lynch June Fund Manager Survey finds record number of investors consider equities overvalued. Net 44% of investors surveyed say equities are overvalued, the highest response on record and up from net 37% last month. Three quarters of investors surveyed say internet stocks are expensive (57%) or bubble-like (18%) .Net 84% of respondents indicate the US is the most overvalued region for equities, a new all-time high; investors find European equities (net 18%) and EM equities (net 48%) to be undervalued. Average cash balance increases to 5.0%, up from 4.9% in May and still above the 10-year average of 4.5%. “Market vulnerability to profit weakness is very high,” said Michael Hartnett, chief investment strategist, “with investors’ perception of excess valuation coinciding with high global profit expectations.” Ronan Carr, European equity strategist, added that, “With the allocation to Eurozone equities still near historical highs the pause in performance may last a while longer.”Net 47% of investors surveyed say global monetary policy is “too stimulative,” the highest number in over six years.
