|
Global equity allocations accounted for an average 52.3 percent,
essentially unchanged from 52.2 percent in the previous month,
with bonds also static at 35.6 percent versus 35.7 percent,
according to the latest poll of 13 fund managers.
Those recommendations, which aren't far off where they were in
November, stand in contrast with around a 10 percent rally in
the Standard & Poor's 500 <.SPX> and about a 30 basis point rise
in benchmark bond yields since Trump's shock election victory.
U.S. fund managers have maintained mostly steady recommendations
for the past year, suggesting an ongoing defensive holding
pattern ahead of several events scheduled over the next few
months that could weigh on the global economy.
"While we are cautiously positive and continue to favor equities
over bonds, we are not blinded to the multiple risks facing
global growth and the markets," wrote Alan Gayle, director of
asset allocation at RidgeWorth Investments.
"In addition, the pace and character of FOMC monetary policy is
uncertain given the more optimistic tenor emerging in the latest
discussions. Globally, Brexit discussions are slated to begin
officially in the coming months, and elections in the
Netherlands, France, and Germany are almost certain to generate
renewed populist and anti-EU sentiment."
Financial markets have already priced in a lot of positive news
from Trump's promises on sweeping tax cuts for individuals and
businesses, as well as infrastructure spending, and this has
pushed U.S. stocks to record highs.
Trump is due to outline his plans in more detail in a speech to
Congress later on Tuesday.
"Optimism regarding a new wave of business-friendly policies and
regulations may be blunted by the realities of Washington
politics," RidgeWorth's Gayle added.
Fund managers kept allocations to cash, property and alternative
investments steady too.
Global wrap-up: [ASSET/WRAP]
Europe poll story: [EUR/ASSET]
UK poll story: [GB/ASSET]
Japan poll story: [JP/ASSET]
China poll story: [CN/ASSET]
(Polling by Sujith Pai and Shrutee Sarkar; Editing by Mark
Trevelyan)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
