Sep. 16 at 5:06 PM
BoA Aug FMS: 58% seeing global equity markets as overvalued (up 1% from Aug).
Yet, the net share of managers who said they are overweight stocks doubled to 28% this month from 14% in August. That allocation is just a tick above the long-term average, but it marks a 7-month high. Further, cash levels are at 3.9% (below 4% "sell" signal which triggered in July)
Biggest tail risk: “recessionary trade war” risk ebbs (12% vs 80% in April (now split b/n 2nd wave of inflation (26%) Fed independence/dollar debasement (24%), and disorderly rise in bond yields (22%)
$SPY $TLT $UUP $GLD $UVXY