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☆ Here’s where advisors are hunting for yield and portfolio diversification, Bank of America finds
▼ + stars: | 2023-06-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Investors' demand for alternative investments is cooling, but financial advisors anticipate adding these assets over the long term to boost diversification, a Bank of America survey of financial advisors found. Last week, the firm conducted its quarterly survey of financial advisors and received responses from 159 individuals. In the world of income, just under half of advisors are rotating client deposits into higher-yielding money market funds, while about 34% are raising cash and liquidity due to market uncertainty, Bank of America found. Indeed, retail money market fund assets grew to $1.99 trillion during the week ended June 21, according to the Investment Company Institute . Bank of America predicts that when volatility normalizes, advisors will reduce the amount of cash they're squirreling away for clients, but they will continue to sort into higher-yielding liquid products – like these money market funds.

Persons: Craig Siegenthaler, Siegenthaler, — CNBC's Michael Bloom Organizations: Bank of America, Beta Fund, alts, of America, Investment Company Institute Locations: 5Ys

☆ Investors are piling into tech stocks and shrugging off the debt-ceiling drama, Bank of America survey shows
▼ + stars: | 2023-05-18 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

Fund managers' allocations to tech stocks have hit a 17-month high, according to Bank of America. Over 70% of investors aren’t worried about the debt-ceiling drama in Washington, the bank’s latest survey showed. Being "long big tech" was also the most crowded trade amongst the fund managers surveyed, according to BofA. The investors' move into tech stocks comes with the sector in the midst of a breakneck rally. Tech stocks have also benefited from hopes that the Fed will soon wind down its war on inflation.

☆ Investors lift equity allocations to 5-month high - BofA survey
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +1 min

LONDON, May 16 (Reuters) - Investors lifted equity allocations to a 5-month high but cash levels also increased to 5.6%, even as they remained worried about a possible credit crunch and inflation staying elevated, a Bank of America survey showed on Tuesday. Investors rotated portfolios into tech stocks, lifting allocations to the highest since December 2021, the euro area and equities, and cut exposure to commodities and utilities. "Long big tech", "short banks" and "short U.S. dollar" were the most crowded trades in May, while contrarian trades were "long REITs", "long banks", "long value stocks", "short bonds", "short tech" and "short growth", the survey found. A net 65% of respondents now expect a weaker economy, the most pessimistic in 2023, but most still expect the economy to experience a "soft landing". Reporting by Samuel Indyk; editing by Danilo MasoniOur Standards: The Thomson Reuters Trust Principles.

REUTERS/Pierre AlbouyMILAN/LONDON, April 21 (Reuters) - Short-sellers who bet against European banks are set to lose a substantial amount of money in April after the sector bounced back from the shock downfall of Credit Suisse (CSGN.S) in anticipation of strong quarterly earnings. The STOXX European banks share index (.SX7P) has risen as much as 18% from late March's lows. But a Bank of America survey showed fund managers cut bank exposure in April to the lowest since May 2020, as they piled into more recession-proof defensive sectors. Ortex estimates short interest on European banks is close to 1% of the free share float, an 11-month high. One area of concern is exposure to commercial real estate and investors will be alert to any sign of emerging stress as European lenders report earnings next week.

LONDON, April 19 (Reuters) - If a mega Western recession is coming down the pike in the second half of this year, someone should point it out to the junk bond market. The investment herd seems more convinced than ever that recession is on the way amid tightening bank credit after the March bank stress - even if not all the incoming evidence supports that take. More than a third now see the biggest risk ahead as a bank credit crunch and global recession. And that's with junk spreads more than three times higher than quality corporates. U.S. and European junk bond spreads historicallyBank of America survey on investment grade bonds vs junkCOURAGE AND DECOMPRESSIONThere's little doubt than many investors want to steer well clear, for now at least.

Wall Street giant Goldman Sachs - often a market mover with its big macro calls - is a good example. Last month's Bank of America survey of fund managers around the world still had net 68% expecting recession this year. Rates markets reared up to price Fed rates back above 5% and now expect them higher at yearend than they are today. And yet market volatility gauges have stayed peculiarly serene. Bond market volatility (.MOVE) remains well above its 20-year mean - but it has retreated sharply to two-thirds of last year's peaks.

According to figures from the World Federation of Exchanges, U.S. equity market cap accounted for 41.0% of the world total last year. That was just below the previous year's 42.0%, which was the highest since 2003.chartBased on WFE data, U.S. market share has averaged 38.3% since 2000. Meanwhile, global equity market data provider MSCI estimates that U.S. market cap as a share of the global total hit a record high around 62% in 2021. THAT SHRINKING FEELINGAccording to Datastream, global market cap is around $85 trillion, down from a peak of just under $100 trillion in late 2021. chartShrinking the U.S. slice of the global market cap pie will take time, but there are indications that investors' U.S. equity holdings have already been cut significantly.

☆ 'Your Rich BFF' shares 3 ways to be smarter and more successful with money in 2023
▼ + stars: | 2023-01-24 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +2 min

Follow the 50/30/20 methodThe 50/30/20 method is one of Tu's favorite ways to manage her money because it can make budgeting really easy. Lastly, put the final 20% of your money toward savings, investments and paying down additional debt. Higher interest rates will cost you more in the long run, so it's smart to pay those debts off first. Next, you can turn your attention toward paying down debts with lower interest rates. Since low-interest debt tends to be less costly, you can also start putting money toward investments like your 401(k).

☆ 63% of Americans want to save more next year—but 77% say high prices could make it difficult
▼ + stars: | 2022-12-19 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +2 min

In fact, 63% of Americans are setting savings goals in 2023, a recent Bank of America survey found. Last year, 44% of Americans said they hoped to save for retirement, but that number fell to 22% this year. As a result, 77% of Americans who set financial resolutions said inflation may impact their ability to achieve them. "With an uncertain economic outlook for 2023, setting financial goals and saving for bigger purchases can seem daunting," Droesch says. "Even the smallest steps can help lead you to achieve your bigger savings and budgeting goals," Droesch says.

☆ Bank of America survey: 71% of workers say their pay isn't keeping up with inflation
▼ + stars: | 2022-09-27 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

The Bank of America survey found that despite being employed, 62% of workers are stressed about their finances. “The major contributor to that stress is inflation,” said Lorna Sabbia, head of retirement and personal wealth solutions at Bank of America. Financial wellness hits five-year lowThe percentage of employees who feel financially well off dropped to 44% in the Bank of America survey. The Bank of America survey found 21% of employees thought about switching jobs and 9% did. A Bank of America survey of consumers found that 17% of households had either missed or made a late payment on utilities.

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