Professional investors are heading for the sidelines while demanding that companies stop using their cash to buy back stocks and instead improve their balance sheets.
The Bank of America Global Fund Manager survey for April reflects the large level of caution seen in the markets since efforts to stop the coronavirus have shut down large portions of the world's economic activity and abruptly halted the longest bull market in U.S. history.Managers reported average cash balances of 5.9%, up from 5.1% in the March survey just as the damage from the virus was beginning. That's the highest cash balance since the Sept. 11, 2001 terror attacks.
Michael Hartnett, chief investment strategist at BofA Global Research, said he interprets the move to cash as "peak pessimism" as equity allocation hits its lowest since March 2009, when the market bottomed and the 12-year bull market began.Just 5% want to see more share buybacks, the lowest level in 20 years, while 79% want to see improvement in company balance sheets, which is the highest level over the same period.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
America's Largest Bank, JPMorgan Chase, Prepares For A Massive Round Of DefaultsThe country's largest bank, JPMorgan Chase, has set aside the largest amount of money since 2010 to prepare for defaults. Chase says its profit fell by 69%. Wells Fargo's profits fell 89%.
Read more »
World Bank sees 'huge willingness' to suspend debt for poorest countriesWorld Bank says G20 and G7 are supportive of a call by the World Bank and International Monetary Fund for a temporary halt in debt payments.
Read more »
Fed's Clarida says central bank has tools to avoid deflation: BBGThe coronavirus shock to the economy won't push the United States into a damaging bout of deflation given the Fed's response and power to do more, Fed vice chair Richard Clarida said on Monday.
Read more »
World Bank, IMF Push to Consolidate Patchwork Approach to Coronavirus CrisisIn addressing the coronavirus pandemic, the international financial community has lacked a unified approach, observers say. But the IMF and World Bank are pushing world leaders to coordinate more closely.
Read more »
Indonesia central bank may stay on hold for market stability: Reuters pollA small majority of analysts expect Indonesia's central bank to keep its policy rate on hold on Tuesday, as it tries to maintain stability in its currency and capital markets amid pressures from the coronavirus outbreak, a Reuters poll found.
Read more »
China central bank raises stake in India's HDFCThe People's Bank of China increased its stake in Housing Development Finance Corp Ltd to 1.01% from 0.8%, the Indian lender said in a filing on Saturday.
Read more »