U.S.-based fund managers boosted cash and cut back on equities on worries about a global slowdown. Bobbi Rebell reports.
The big swings in the market this year have fund managers cutting back on stocks, and boosting cash positions to a nine-month high according to a new Reuters poll of 11 U.S. money managers. The portion of a portfolio they recommend should go to stocks fell to 51.9 percent in February from 52.5 percent. That's down almost four percentage points from a year ago. They recommend putting 4.4 percent of your money in cash up from 4-percent last month. Alan Gayle, senior investment strategist at RidgeWorth Investments saying quote "We lowered our equity weighting from overweight to neutral reflecting the persistent headwinds from the softer global economy, stronger dollar, and weak oil prices on corporate earnings." Fund managers also wary of the impact of all of this on emerging markets. Money managers recommended bond holdings were barely changed at 37.2 percent but that figure is up almost three percentage points from a year ago. Some of the recent market volatility is being blamed on worries that growth is slowing in China. On Monday, in a move to counter this... Chinese authorities cut the amount of cash banks must hold in reserve for the fifth time in a year.