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The BofA-ML's November Global Fund Manager Survey expects non-US equities are expected to be the best performing asset (45 per cent) in 2019.
Only 11 per cent believes a global recession in next year.
During the October correction, fund managers put some cash to work with cash levels dropping from 5.1 per cent to 4.7 per cent in November. Fund managers allocated to the US and emerging market stocks, REITs, and healthcare, the survey found.
However, 44 per cent of the fund managers expect global growth to decelerate in the next year, the worst outlook since November 2008. "What’s more, 54 per cent are anticipating a slowdown in Chinese growth in the next year, the most bearish they haveve been in over 2 years," the report added.
The fund managers surveyed expect the S&P 500 will peak at 3,056, a 12 per cent upside from current levels. However, about 30 per cent of the fund managers think US stocks have already peaked, up from 16 per cent from last month’s survey.
The biggest tail risks according to fund managers surveyed include the trade war (35 per cent), quantitative tightening (26 per cent) and a China slowdown (14 per cent..
The survey polled 225 fund managers managing $641 billion in assets under management between November 2 and 8.
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