AGL 38.09 Decreased By ▼ -0.07 (-0.18%)
AIRLINK 136.34 Increased By ▲ 2.15 (1.6%)
BOP 9.20 Increased By ▲ 0.35 (3.95%)
CNERGY 4.72 Increased By ▲ 0.03 (0.64%)
DCL 8.85 Increased By ▲ 0.18 (2.08%)
DFML 38.34 Decreased By ▼ -1.44 (-3.62%)
DGKC 85.45 Increased By ▲ 0.30 (0.35%)
FCCL 35.15 Increased By ▲ 0.25 (0.72%)
FFBL 76.21 Increased By ▲ 0.61 (0.81%)
FFL 12.66 Decreased By ▼ -0.08 (-0.63%)
HUBC 108.70 Decreased By ▼ -0.75 (-0.69%)
HUMNL 14.73 Increased By ▲ 0.63 (4.47%)
KEL 5.58 Increased By ▲ 0.18 (3.33%)
KOSM 7.96 Increased By ▲ 0.21 (2.71%)
MLCF 40.78 Decreased By ▼ -0.59 (-1.43%)
NBP 70.94 Increased By ▲ 1.24 (1.78%)
OGDC 195.25 Increased By ▲ 1.63 (0.84%)
PAEL 26.96 Increased By ▲ 0.75 (2.86%)
PIBTL 7.46 Increased By ▲ 0.04 (0.54%)
PPL 168.02 Increased By ▲ 4.17 (2.55%)
PRL 26.19 Decreased By ▼ -0.17 (-0.64%)
PTC 20.34 Increased By ▲ 0.87 (4.47%)
SEARL 92.75 Increased By ▲ 8.35 (9.89%)
TELE 7.84 Decreased By ▼ -0.15 (-1.88%)
TOMCL 35.49 Increased By ▲ 1.44 (4.23%)
TPLP 8.91 Increased By ▲ 0.19 (2.18%)
TREET 17.29 Increased By ▲ 0.11 (0.64%)
TRG 59.27 Decreased By ▼ -1.73 (-2.84%)
UNITY 31.02 Increased By ▲ 2.06 (7.11%)
WTL 1.37 No Change ▼ 0.00 (0%)
BR100 10,901 Increased By 125.5 (1.16%)
BR30 32,654 Increased By 420 (1.3%)
KSE100 101,357 Increased By 1274.6 (1.27%)
KSE30 31,488 Increased By 295 (0.95%)

US funds turned in favour of stocks in November at the expense of cash, looking for better returns before the end of the year by lifting their recommended equity allocations to the highest since June, a Reuters poll of investment managers showed. That shift comes despite worries that an almost-daily-record-setting rally this year - driven by improving global economic conditions and optimism the US economy has gathered steam - has made shares look expensive on nearly any measure.
"With stocks hitting record highs, many investors want to avoid the largest source of risk in their portfolios - equities. But most assets are overvalued and we do need to find value before the year closes out," said a fund manager at a large US investment firm. "We also think equity markets can continue their upswing a bit more as prospects for the economy look better."
The latest recommendations for stock holdings marked a shift from the pattern seen in the past few months when funds had either cut or kept them steady. But it is still below the more common guidance of over 60 percent of the portfolio in the past. The small shift to equities also comes despite a lack of confidence that a tax-cutting bill will make it through the US Senate this year, a separate Reuters poll of economists earlier this month showed.
The Reuters survey of 13 fund managers, conducted Nov 13-29, showed equity allocations in a model global portfolio rose to 57.2 percent from 56.7 percent, the highest since the middle of the year. But the latest move up in stock allocations is modest given the roughly 17 percent rally in the Standard & Poor's 500 this year. Fund managers do not need to raise portfolio allocations to stocks in order to reap profits from them.

Comments

Comments are closed.