Bank of America reports the first improvement in investor sentiment since June, according to a survey of fund managers with more than $632 billion in assets.
— Investor optimism is linked to expectations of a cut in the Fed's interest rate.
— Despite fears of a recession, most do not predict one in the next 12 months.
— 79% of fund managers believe in a “soft landing” of the economy.
— Investors are increasing SHORT positions in Chinese stocks and LONG positions in gold.
— 42% believe the global economy will not grow next year.
— Investments in cyclical and commodity goods have reached a seven-year low.
