"Fund Managers' Current Asset Allocation - July"

Review of BAML asset allocation report from Fat Pitch blog. Highlights:

• "Remarkably, although US bonds have outperformed SPX so far in 2014, fund managers are still hugely underweight. In July, weightings fell to their lowest in more than 6 months. If there is a hated asset class, it's not equities, it's bonds."
• "It's worth recalling that last month 88% of fund managers said they believe US 10-year bond yields will be over 2.5% by year end. Yields are currently 2.46%."
• "In July, 71% of fund managers said they believe global core CPI will be higher in the next 12 months. This is the highest percent holding this view since March 2011. In the next 6 months, US 10-year yields fell from 3.6% to 1.7%."

Not owning (or, even worse, being short) duration is the groupthink clueless trade.