Fund managers fleeing U.S. stocks on rate-hike fears: Merrill Lynch survey

Preference for Europe climbs to record level

By SARA SJOLIN
MarketWatch.com
Mar 17, 2015

LONDON (MarketWatch) — Investors are shunning U.S. equities at the highest rate since the financial crisis on speculation that the Federal Reserve will raise interest rates in the second quarter, according to the monthly B.of A. Merrill Lynch Fund Manager Survey.

According to the survey’s findings for March, published Tuesday, a net 19% of global asset allocators are now underweight U.S. stocks. That’s the largest underweight position since January 2008 and represents a big turnaround from the net 6% overweight in February. Additionally, a net 23% of the polled fund managers called U.S. equities overvalued — the proportion holding that view since May 2000.

“The March survey indicates that investors have started to bring forward the date of the Fed’s first rate hike, rather than continue to push it back,” the analysts said in the release.

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