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The latest Fund Manager Survey (FMS) from Bank of America (BofA) securities conducted between Aug. 7 to Aug. 13 shows most managers believe that a new bull market has begun, following a historic rally from the March lows.

Meanwhile, many investors believe that a coronavirus vaccine would propel government bond yields higher. 

Key points (source:

58% of investors say the new bull market has started (compared to 25% in May).

41% say credible COVID-19 vaccine will most likely lead to higher bond yields, followed by inflation (37%). 

Investors expect vaccine announcement in the first quarter of 2021. 

61% of respondents predict U- or W-shaped recovery vs. 20% say V-shaped; 51% still prefer balance sheet discipline vs. 37% want increased Capex (was 13% in Apr).