Study Shows Fund Managers Anticipating Rate Rise, EU QE

Hedge fund managers are increasing their exposure to European stocks, as anticipation of a U.S. interest rate increase grows. Positive investment sentiment towards Europe is growing in the wake of the recently announced ECB stimulus program, according to a BofA Merrill Lynch Fund Manager Study. Fund managers’ expectations for interest rates The study, which included 202 panelists with a total of $556 billion in assets under management, finds that fund managers expect to see a bifurcated market between U.S. and European stocks. Real rates in Europe are expected to remain low, while U.S. rates are expected to risk, with the…