Buying S&P 500 shares and gold were among the most popular trades in the aftermath of the US election, according to a survey.
The research of 114 global fund managers by Bank of America Merrill Lynch (BoAML) also found that only 2% of managers planned to buy EU equities and 4% planned to buy emerging market equities as ‘risk-off’ sentiment grew.
The three most popular trades were:
· Buy S&P 500 (30%)
· Buy gold/sell risky assets (27%)
· Buy US dollar (10%)
There were risk-on moves in the 36 hours after the election, but BoAML described these as tactical and not fundamental in nature.
Also, 59% of investors said the Donald Trump victory would not affect their cash holdings and 46% said they thought Trump was most likely to pass a tax repatriation and infrastructure spending bill in first 100 days.
©2016 funds europe
