Asset allocation in U.S. equities more than halved in July to a nine-month low as investors sold technology companies amid concern about the outlook for global growth, a Bank of America Corp. survey showed.
U.S. stocks advanced, rebounding from yesterday’s decline, amid speculation the Federal Reserve will take steps to stimulate the economy and after the European Central Bank endorsed a plan to guarantee bank deposits.
The fastest profit growth since 2004 will push European stocks up 15 percent by January, handing investors the biggest two-year advance in a decade, according to estimates from 13 strategists surveyed by Bloomberg.
U.S. stocks retreated, pulling the Standard & Poor’s 500 Index down from a 32-month high, after a report showed retail sales increased less than forecast and Exxon Mobil Corp. led a decline in energy producers.
Investors were the most bearish on U.S. stocks in at least four years as money manager scaled back their outlook for global growth and raised their cash holdings, a BofA Merrill Lynch Global Research survey showed.