Fund managers assume the worst is behind them.The most recent investor survey by BofA Securities discovered that fund managers globally had been at their most bullish since February, when coronavirus fears had been simply beginning to seep into the markets.Whereas fund managers final month largely believed that stocks had been in a “bear market rally,” that is now not the case. On a internet foundation, 46 p.c of buyers polled in August consider they’re now in a daily bull market.Development expectations had been additionally at their highest ranges since December 2009, with a 79 p.c of respondents anticipating to see the economic system get stronger. As well as, a internet 57 p.c predicted that world income would enhance.Nonetheless, Bank of America strategists consider that fund managers usually are not “dangerously bullish,” with cash ranges reported on this month’s survey falling into the bank’s “neutral” vary. Polled buyers additionally reported muted expectations for the financial restoration, with simply 17 p.c anticipating a “V-shape,” or speedy rebound. As an alternative, 37 p.c had been projecting a “W-shape” whereas 31 p.c anticipated to see a “U-shape” restoration.Whereas the unfold of coronavirus remained the highest tail danger for surveyed fund managers, respondents instructed BofA that they anticipated to see a Covid-19 vaccine announcement by early subsequent 12 months. Different highly-cited tail dangers included a commerce battle between the U.S. and China and the upcoming U.S. election.In the meantime, bets on U.S. tech stocks had been as soon as once more cited as probably the most crowded commerce, adopted by lengthy positions in gold. A internet 31 p.c of surveyed fund managers mentioned that gold was overvalued — a pointy spike from zero p.c final month. [II Deep Dive: Document Proportion of Fund Managers Name U.S. Tech Stocks the ‘Most Crowded’ Commerce]Tech corporations, nevertheless, remained favorites of the surveyed managers regardless of the crowding, with BofA strategists reporting that asset allocation remained “stubbornly skewed toward U.S. growth stocks.” Nonetheless, they noticed “green shoots” for small-cap and value stocks, together with different “inflation assets.”Greater than 200 buyers managing a mixed $518 billion participated within the BofA survey, which befell between August 7 and August 13.