Global fund managers turned defensive in their positioning this past month, according to Bank of America’s December survey, opting to wait-and-see what US policymakers decide to do in their final meeting this year.
The bottom line is that concern about hawkish central banks has sparked a surge in cash to 5.1 per cent of holdings this month from 4.4 per cent in November, a move that Bank of America calls a “contrarian buy signal”. Its the highest cash holding since May 2020.