CNBC: Record Percentage of Investors Say Stocks are Overvalued, According to Bank of America Survey

Article by John Melloy in CNBC financial

A record percentage of money managers believe the stock market is “overvalued,” according to the Bank of America Global Fund Manager Survey, one of the longest-running and widely followed polls of Wall Street investors.

78% of investors say the market is overpriced, the highest percentage since the survey began in 1998 and exceeding the levels when the dot-com bubble burst in 1999-2000.

Bank of America surveyed 212 mutual fund, hedge fund and pension fund managers with $598 billion under management.

Here are some of the key findings, conducted during the week that ended Thursday:

• Some 53% say the comeback from the March lows is a “bear market rally.” Just 37% believe it’s a new bull market.
• Only 18% expect a V-shaped economic recovery from the coronavirus. Most expect a U- or W-shaped recovery.
• Investors took cash levels down from 5.7% to 4.7% since last month, the biggest “dash from cash” since 2009.

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