Top money managers have turned sharply more bullish since the start of the year. But with that comes a problem: Inflation fears, they say, are back on the table.
"Asset allocators increasingly believe that the Fed should be more concerned about the risk of higher inflation than about the risk of slower economic growth," says Merrill adviser David Bowers, who produced the report.
The money managers have dropped their cash balances to some of the lowest levels since Merrill began tracking the figure back in 1997, and they haven taken on more risk, and more equities, in their portfolios.
"Asset allocators increasingly believe that the Fed should be more concerned about the risk of higher inflation than about the risk of slower economic growth," says Merrill adviser David Bowers, who produced the report.
The money managers have dropped their cash balances to some of the lowest levels since Merrill began tracking the figure back in 1997, and they haven taken on more risk, and more equities, in their portfolios.
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