Archived IMT (2010.07.13)

BoA/Merrill Lynch Fund Survey finds the biggest deterioration in sentiment among portfolio managers since 2005 according to MNI. A net 14% of global fund managers expect the real economy to weaken over the next 12 months, compared to +24% expecting it to strengthen in last months survey. That is the largest 1-month fall in expectations since mid-2005. In April, when U.S. equities posted new 2010 highs, a net 61% of those polled looked for the real economy to strengthen in the coming 12 months. Portfolio managers reduced their equity allocation to 11% overweight from +24% in June, 30% in May and a +52% in April.