Implied Equity Allocation by U.S. Households Periods of high household equity allocation have historically been followed by lower market returns, implying that current trends might indicate potential risks for future investors. Image: J.P. Morgan
U.S. Households Aggregate Financial Asset Allocation Current high levels of U.S. household equity allocation suggest potential risks for future investors, as historical trends indicate this often precedes lower market returns. Image: Goldman Sachs Global Investment Research
FMS Investors – Average Percentile Rank of Growth Expectations, Cash Allocation, Equity Allocation The decline in pessimism among FMS investors is viewed as a positive indicator, suggesting a growing willingness to embrace risk. Image: BofA Global Fund Manager Survey
Equities – FMS Global Equity Allocation FMS investors significantly increased their equity allocation in October, the largest rise since June 2020. This shift is primarily due to a favorable economic climate resulting from the easing of monetary policies by major central banks. Image: BofA Global Fund Manager Survey
Cash Allocation by Non-Bank Investors Globally Investors globally have significantly reduced their cash allocations, reaching the lowest levels observed since at least 1999. Image: J.P. Morgan
GWIM Cash Allocation as % Asset Under Management BofA’s private clients have reduced their cash allocation, remaining below the long-term average, while increasing their equity exposure. Image: BofA Global Investment Strategy
GWIM Equity Allocation as % Assets Under Management BofA’s private clients show optimism about equity market growth and potential returns, as evidenced by their 63% portfolio allocation to equities. Image: BofA Global Investment Strategy
U.S. Households Allocation to Corporate Equities as a % of Financial Assets Historically, periods of high household equity allocation have been followed by lower market returns, suggesting that current trends may signal potential risks for future investors. Image: MarketDesk Research
Implied Equity Allocation by Non-Bank Investors Globally Despite concerns about potential economic slowdowns, investors are currently maintaining an overweight position in global equities, suggesting a positive outlook for stock markets. Image: J.P. Morgan
U.S. Household Equity Allocation Despite the overall strength of the U.S. economy and markets, historical trends suggest that elevated U.S. household equity exposure tends to precede lower future equity returns. Image: BofA Research Investment Committee
Sell Side Indicator (Average Recommended Equity Allocation by Wall Street Strategists) The Sell Side Indicator, which tracks Wall Street strategists’ equity allocation recommendations, remains in neutral territory, with no sell signal triggered. Image: BofA Global Research