Investors most underweight commodities since May 2020: BofA

Global investors stayed bearish in July, at their most underweight commodities since May 2020, and turning underweight euro zone equities for the first time this year, a Bank of America survey showed on Tuesday.

60% of respondents to a poll of 262 fund managers with $652 billion of assets under management expect weaker global growth in the next twelve months, down 2 percentage points from June.

The survey also found, however, that more investors are expecting a "soft landing" for the economy, with 68% anticipating that scenario while expectations for a "hard landing" faded.


Earnings per share expectations were the least pessimistic since February 2022.

Investors nudged up their cash allocations to 5.3% from 5.1% in June, and, according to the survey, "long big tech" remained the most crowded trade followed by "long Japan", while worries about inflation keeping central banks hawkish grew.