Stagflation Fears Surge and ‘Sentiment Is Dire’ in BofA Survey
- Global growth optimism at a record low in fund manager survey
- Investors are long cash, US dollar and are short bonds, tech
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Investor fears of stagflation are at the highest since the 2008 financial crisis, while global growth optimism has sunk to a record low, according to Bank of America Corp.’s monthly fund manager survey.
Global profit expectations also dropped to 2008 levels, with BofA strategists noting that prior troughs in earnings expectations occurred during other major Wall Street crises, such as the Lehman Brothers bankruptcy and the bursting of the dotcom bubble.