BofA: Global growth prospects at all-time low

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Optimism about global growth has dropped to an all-time low, according to BofA’s April fund managers survey. The expectation of stagflation in the global economy is at its highest since August 2008.

71 percent of survey respondents said they were pessimistic about global growth in the coming months.

Global recession and inflation top risks

According to the survey, global recession is seen as the biggest tail risk. The hawkish attitude of the Central Banks and inflation were among the other risks. The war in Ukraine was seen as the biggest risk in the survey in March. War ranked 4th in the rankings of risks in this month’s survey.

Cash assets of the participants decreased from 5.9 percent to 5.5 percent. Investors’ commodity positions, on the other hand, increased by a record 38 percent.

Fund managers who participated in the survey expect 7 interest rate hikes from the Fed this year and the tightening cycle to end in April 2023.

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