BofA Says Global Investors Spooked by Scottish Vote

As the referendum for Scottish independence looms, negativity towards U.K. stocks has deepened, so much so that Bank of America Merrill Lynch has branded the U.K the world’s “least popular region” among asset allocators.

Fund managers are not only underweight U.K. stocks ahead of Thursday’s vote that will decide Scotland’s future, long term it is the region global investors want to stay away from the most, the bank said.

Some 16 percent of the investors polled by the bank for its monthly fund manager survey, said they were underweight U.K. equities. Looking ahead, 14 percent of the group said the U.K. is the region they most want to underweight in the coming 12 months.

Furthermore, a fifth of the investors surveyed by the bank also says the U.K. has the least favorable profit outlook, up from 12 percent last month.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza