The BofA Merrill Lynch June fund manager survey has found that allocation to US equities has climbed 16 percentage points to net one percent overweight, for the first time investors in 15 months with 64 percent of respondents saying that the US has the most favourable outlook for profits, a 17-year high.

June rotation shows investors are selling cyclical plays (banks, emerging markets and Eurozone equities) in favour of defensive sectors and US equities.

When asked what catalyst is most likely to stop Fed tightening, 69 percent of investors surveyed state domestic reasons (lower inflation, higher unemployment, Fed independe...