Investors haven’t been this optimistic on the global economy since 2011, joining small businesses in taking a glass-half-full outlook as a new administration takes over in Washington.
A full 23 percent of investors expect an outright “boom,” according to a survey released Tuesday by Bank of America Merrill Lynch, while the number predicting negligible growth over the next 12 months has fallen by more than half to 43 percent.
The optimism comes amid forecasts global growth will pick up and as Donald Trump promises to cut taxes, boost fiscal spending and loosen regulations in moves that could boost corporate earnings.
“Macro optimism is surging,” wrote the team, led by Micheal Hartnett, Bank of America’s chief investment strategist.
The bank surveyed global fund managers during the first week of February, with respondents having a combined $630 billion in assets under management. The level of optimism is the highest seen since the firm’s survey in early 2011, according to the chart below.
“The U.S. economy is not only humming on all cylinders, but in our view the optimism associated with a clean sweep by the Republicans in Washington is likely to create a self-fulfilling period of strong markets and at least the potential for strong growth,” the credit analysts wrote.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.