The Bull Market Booms Back: Fund Manager Sentiment Reaches New Relative High

Zinger Key Points
  • Global fund manager sentiment reached a relative high in June following encouraging signs in the economy.
  • The survey's previous peak was in November 2021.

Fund managers responding to a closely watched survey are bullish on the economy amid the SPDR S&P 500 ETF Trust SPY and the NASDAQ Invesco QQQ ETF‘s QQQ historic rally.

The Data: A post on X relayed data from a Bank of America sentiment report of global fund managers. Participants manage over $640 billion in assets assets.

Manager sentiment reached a new relative high in June, up from a historic low during Silicon Valley Bank’s bank run in 2023. The positive sentiment is not far from the peaks it reached in November 2021, following 2017’s corporate tax cuts in 2017, and in response to quantitative easing during the Great Recession.

Market sentiment is based on fund managers’ growth expectations, holdings in cash and allocation to equities.

Why it Matters: Bullish market sentiment can largely be attributed to cooling inflation, hopes of an economic soft landing and the historic performance of the so-called Magnificent Seven companies — Microsoft Corp, NVIDIA Corp, Apple Inc, Alphabet Inc, Inc, Meta Platforms Inc and Tesla Inc.

Bullish sentiment is reflected by Americans pouring record amounts of capital into stocks rather than less risky alternatives such as cash.

Those who were bearish on the market during 2022 and 2023 missed out on the S&P 500 and NASDAQ’s historic gains. Some experts are concerned that the market has become too bullish and is due for a future drawdown.

Now Read: Semiconductor, Nvidia Woes Deepen; Nasdaq 100 Slips, Dow Rallies; Bitcoin Sinks To $60,400 – What’s Driving Markets Monday?

Image: Shutterstock

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