Fund Managers Most Bullish Since Early 2022 on Rate Cut Hopes for 2024
• Fund manager sentiment highest since January 2022 according to Bank of America survey, with cash levels at 2-year low • Optimism due to expectations of "Goldilocks '24" with rate cuts in 2023, boosting bonds and tech stocks • 91% of managers think Fed is done hiking rates; 89% expect rate cuts in first half of 2024 • Biggest market risks seen as potential economic "hard landing" (32%), high inflation forcing more rate hikes (27%), geopolitical turmoil (17%) • Survey had 254 respondents managing $691 billion in assets under management