Oil Prices Are ‘Undervalued’ Says Bank Of America

According to a global survey conducted by Bank of America (BofA) Merrill Lynch, 36% experts believe that oil prices are ‘undervalued.’ The survey also revealed that 69% of the fund managers fear deflation in 2015. “Consensus is long Deflation, Cash & the US dollar, and short Inflation, Risk and Commodities,” the survey observed.

“Given the big rotations out of energy, materials and commodities, it is surprising that allocation to GEM equities actually increases to net 1% OW from neutral last month,” the survey noted. 67% of the fund managers believed that equities would be the best performing asset class in 2015.

A brighter economic outlook in India following the change of power at the Centre was also reflected in the survey as India emerged as the “most preferred country” among emerging market and Asia Pacific investors. Taiwan, China, Indonesia and Philippines are the other preferred countries.

Bank of America Merrill Lynch is the corporate and investment banking division of Bank of America. It provides services in mergers and acquisitions, equity and debt capital markets, lending, trading, risk management, research, and liquidity and payments management. (Source: Wikipedia)