LONDON Nov 13 Global investors raised their
exposure to stocks to a 16-month high in November, taking a more
optimistic view on the world economy despite concerns about the
U.S. 'fiscal cliff', a survey showed on Tuesday.
A net 34 percent believe the world economy will strengthen
in the next 12 months, the highest reading since February 2011,
Bank of America/Merrill Lynch (BofAML) said in its monthly asset
Investors were also more optimistic about China, with
confidence that its economy will strengthen in the coming year
at a three-year high among investors surveyed in Asia Pacific,
emerging markets and Japan.
The poll showed 54 percent see the biggest tail risk as a
failure by U.S. politicians to reach a compromise on spending
cuts and tax rises scheduled to take effect at the turn of the
year, up from 42 percent in October.
The euro debt crisis is now the biggest concern for only 25
percent of investors despite a gloomier view of the economy - a
net 10 percent see weaker growth in Europe in 2013.
Most of the 248 panelists, with $695 billion of assets under
management, took part in the Nov. 2-8 poll before the U.S.
"Momentum has gathered behind the idea that we are on the
cusp of a 'great rotation' out of bonds and into equities. The
only missing ingredient is a resolution to the U.S. fiscal
cliff," said Michael Hartnett, chief investment strategist at
BofAML Global Research.
A net 35 percent are overweight equities, while a net 35
percent are underweight bonds, the survey showed.