Tue Sep 17 07:15:29 UTC 2024: ## Investor Sentiment Rebounds as Hopes for Soft Landing and Rate Cuts Grow
**MILAN/LONDON** – Global investor sentiment surged in September, marking the first improvement since June, according to a BofA survey of fund managers released Tuesday. The optimism stems from growing expectations of a “soft landing” for the U.S. economy and anticipation of interest rate cuts by the Federal Reserve.
The survey revealed that cash allocations dropped to 4.2%, while investors shifted towards bond-sensitive assets, driving utilities allocations to their highest levels since 2008. Meanwhile, commodity exposure fell to a seven-year low.
BofA described investor sentiment as “nervous bulls,” reflecting a cautious optimism. Recent signs of a slowdown in the U.S. labor market and deteriorating economic indicators have fueled bets on a significant rate cut at the upcoming Fed meeting.
Record highs in stock markets and a sharp rally in bond prices reflect investor confidence in the potential for relief from prolonged high interest rates. The survey, which polled 243 fund managers overseeing $666 billion in assets, found that 52% believe the U.S. economy will avoid a recession in the next 18 months.
Furthermore, 60% of respondents believe current interest rates are excessively restrictive, marking a 16-year high. This sentiment highlights the growing desire for a shift in monetary policy towards easing.
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