Investors Cut Stock Allocations and Increase Cash Holdings in August
Tuesday, 13 August 2024, 07:43
Investors Adjust Portfolios in August
Investors' allocation strategies have undergone a significant change as they reduce their positions in stocks in favor of cash. A recent BofA survey of fund managers highlights this shift, revealing:
- Only 31% of respondents reported being overweight in stocks, down from 51% in July.
- The average cash level among investors rose to 4.3% of their assets, up from 4.1%.
- This change was attributed to weak U.S. payrolls data from July and volatility in the currency market, particularly the rebound of the yen.
Conclusion
This move towards cash reflects a growing caution among investors, driven by uncertain economic conditions and fluctuating market metrics. As expectations for global growth decline, it will be interesting to monitor how this trend evolves in future months.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.