Bofa-Global Fund Manager Survey

12 November 2024 BofANovember Global Fund Manager Survey Investment StrategyGlobal Bottom line: FMS conducted Nov 1st-7th; post-US election respondent (22%) resultsshow surge inbulls on growth,“no landing,”US stocks, small cap, HY bonds; both FMSoptimism (5.9) and BofA Bull & Bear Indicator (6.2) rise, but not yet“extreme”bull (>8). Post-Election Positioning: biggest client sentiment shifts post-US election… •Global growth expectations leap from -10% in Oct to 23%, highest since Jul'21; USgrowth expectations jump from -22% to 28%•Global inflation expectations flip from -44% in Oct to 10%, 1sttime since Aug'21investors forecast higher inflation in next 12 months•Probability of“soft landing”down from 76% to 55%,“no landing”jumps from 14%to 33%,“hard landing”unchanged at 8%•FMS cash level rose from 3.9% to 4.3% for full month of Nov (clients raised cashpre-election), but post-election respondents reported 4.0% cash levels•Surge in investors OW US stocks (from 10% to 29%, highest since Aug'13, Chart 1),OW small vs large (6% to 35%), OW HY bonds vs IG (-3% to 41%, 3-year high) Michael HartnettInvestment StrategistBofAS+1 646 855 1508michael.hartnett@bofa.com Elyas Galou>>Investment StrategistBofASE (France)+33 1 8770 0087elyas.galou@bofa.com 2025Year Ahead: asked for 2025 views, post-election clients predict… •Best performing asset class: US stocks 43%, global stocks 20%, gold 15%•Best performing equity index: Russell 35%, Nasdaq 28%, MSCI EM 15%•Best performing FX: US dollar 45%, gold 28%, Japan yen 20%•Most bullish catalysts: China growth acceleration 35%, US tax cuts 33%; mostbearish catalysts: disorderly rise in bond yields 50%, global trade war 35% Anya ShelekhinInvestment StrategistBofAS+1 646 855 3753anya.shelekhin@bofa.com Myung-Jee JungInvestment StrategistBofAS+1 646 855 0389myung-jee.jung@bofa.com Notes to ReadersSource for all tables and charts: BofA Fund Manager Survey,DataStream Survey period 1stto 7thNov 2024 213 panellists with $565bn AUMparticipated in the November survey.179 participants with $503bn AUMresponded to the Global FMSquestions and 120 participants with$248bn AUM responded to theRegional FMS questions. How to join the FMS panelInvestors/clients are encouraged to Trading ideas and investment strategies discussed herein may give rise to significant risk and arenot suitable for all investors. Investors should have experience in relevant markets and the financialresources to absorbany losses arising from applying these ideas or strategies.>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst sign up to participate in the Survey.This can be done by contactingMichael Hartnettor your BofA salesrepresentative. under the FINRA rules.Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.BofA Securities does and seeks to do business with issuers covered in its research Participants in the survey will continueto receive the full set of monthlyresults but only for the relevant monthin which they participate. reports. As a result, investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Refer to important disclosures on page 24 to 26.12762853 OW: overweight; UW: underweight Timestamp: 12 November 2024 12:30AM EST AA: asset allocation Charts of the Month The BofA Global FMS conducted Nov 1st-7th; fullmonth's results are shown in Table 1 under“Nov'24”, results from 22% of survey thatresponded after election shown in“post-USelection”column. BofA Global FMS key stats-prior month, current month, and post-election Post-election results show higher global & USgrowth expectations, higher inflationexpectations, lower probability of a“softlanding,”lower cash levels, higher allocationsto US & Japanese equities, higher techweighting, and big expectation for small capsand high yield bonds to outperform. Our broadest measure of FMS sentiment,based on cash levels, equity allocation, andeconomic growthexpectations, pulled back to5.2 in Nov from 5.5 in Oct; but if only post-election results considered, the measure wouldhave risen to 5.9 from 5.5. Percentile rank of FMS growth expectations, cash level, and equity allocation November FMScash level rose to 4.3% from3.9%. BofA Global FMS average cash level (% of AUM) For the 22% of global respondents whocompleted the survey after the results of theUS election were known, average cash levelwas 4.0%. For the full November survey, global growthexpectations improved to net 4% expecting aweaker economy (up from net -10% inOctober). Net % of FMS expecting global economy to get stronger next 12 months vs S&P 500 YoY % Results post-Trump win…net 23% expect astronger global economy, the most optimisticsince Aug'21. On landin