Recapping the April BofA Fund Manager...>

MARKET TALK: Recapping the April BofA Fund Manager Survey, released yesterday:

- Cash levels jump from 5.1% to 5.9% = highest level since 9/11 attacks.

- 93% expect global recession in 2020; investors think global GDP cuts largely

over, but global EPS cuts are just beginning.

- 79% want corporations to improve their balance sheets (highest in 20 years);

just 5% want corporate buybacks (lowest in 20 years) = EPS pessimism.

- 52% believe that the economic recovery from the COVID-19 shock will be

U-shaped, 22% say W-shaped, just 15% say V-shaped.

- Equity allocation lowest since Mar'09 (when S&P500 hit 666 low during GFC).

- FMS investors are very long cash, healthcare, staples, utilities, US, tech,

bonds; very short energy, equities, materials, industrials, UK, banks, Eurozone.

- 57% say a COVID-19 second wave = biggest tail risk, followed by a systemic

credit event (30%). Comes after coronavirus topped the biggest tail risk list in

last month's survey (for the 1st time).

- Most crowded trade: Long U.S. Tsys (2nd straight month & for 7/11 months).

- BofA Bull/Bear Indicator pinned at 0.0, i.e. positioning very bearish.