Amid market uncertainty, retirement funds opt for safer bonds, while global managers increase commodities exposure to hedge against volatility. Amid market uncertainty, retirement funds opt for safer bonds, while global managers increase commodities exposure to hedge against volatility. Meanwhile, despite significant Federal Reserve rate hikes, US “super-core” inflation is surging, as per BofA analysis.
Large retirement funds are pulling cash from stocks and putting it into bonds to de-risk and lock in higher yields. Goldman Sachs analysts estimate that pensions will unload $325 billion in stocks this year, up from $191 billion in 2023. https://t.co/i3N8r65TPY
— Lisa Abramowicz (@lisaabramowicz1) April 18, 2024
Global asset managers* have increased their commodities exposure from the previous month by the most % since the survey began
Are global fund managers expecting higher inflation and hedging against it?
*The BofA survey (April 5-11) of 224 managers with $638B of AUM pic.twitter.com/odZOH3cwDJ
— Global Markets Investor (@GlobalMktObserv) April 17, 2024
$smh looks like it is in trouble pic.twitter.com/cUbIOHmpiA
— Michael J. Kramer (@MichaelMOTTCM) April 18, 2024
$ndx broken diamond, broken mega phone, gap filled, may be much kore downside to go if patterns are correct pic.twitter.com/8COg6CbOjW
— Michael J. Kramer (@MichaelMOTTCM) April 18, 2024
Russell 2000 looks like a failed break out attempt $iwm pic.twitter.com/pKCWri98Hl
— Michael J. Kramer (@MichaelMOTTCM) April 18, 2024
Investors are bullish bonds pic.twitter.com/491WUkfEUK
— Win Smart, CFA (@WinfieldSmart) April 18, 2024
The volatility ATM is much more elevated than usual.. the market won't bounce as long as VIX doesn't drop.. it's simple.
Volatility selloors in shambles https://t.co/cnamGGjFvW
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) April 18, 2024
BofA: Can’t touch this…despite big Fed hikes, US “super-core” inflation is rising fast pic.twitter.com/jhvjP1lWhw
— Win Smart, CFA (@WinfieldSmart) April 17, 2024
Gold Forecasts Range from 25% to 50% Upside Over the Next Few Years
Gold is up, influenced by macroeconomic uncertainty, including tensions in the Middle East and the Federal Reserve’s stalled inflation measures. Despite this, gold is perceived as the most overvalued since August 2020, according to a Bank of America Fund Manager Survey. Although a net 26% of respondents believe gold has over-appreciated, there is still optimism, with projections suggesting a potential 25% to 50% increase in value over the next few years. However, 78% of fund managers see a global recession as unlikely within the next year, reflecting a more optimistic economic outlook compared to market behavior.