The monthly global fund managers' survey from Bank of America-Merrill Lynch showed a net 35 percent of fund managers were overweight cash, down from 38 percent in November but still a high reading. The index reading shows the difference between overweight and underweight positions.
"It's pretty grim. We end the year with investors holding lots of cash, expecting low growth and being quite risk averse," said Gary Baker, European equity strategist at BofA Merrill.
"Two thirds of respondents are describing 2012 to be below trend growth."
Fund Managers Still Bearish
I have been arguing that despite the sentiment surveys starting to show too many bulls that large investors are positioned conservatively. The latest Merill Lynch Fund Manager survey seems to corroborate my belief with over 1/3 of managers overweight cash. From Reuters: