Investors Bearish Over Rate Hikes

Investors are bearish as a result of fears over the U.S. Federal Reserve’s moves to raise rates, says the Bank of America’s ‘April Global Fund Manager Survey.’ Fund managers’ expectations of global growth were at a net -71 per cent in April, down from a net -50 per cent in March and the lowest level ever in the history of the survey. A global recession tops the list as the biggest tail risk for managers at 26 per cent (previously 21 per cent in March), followed by hawkish central bank hikes at 25 per cent (previously nine per cent in March) and inflation at 21 per cent (18 per cent in March). It also shows 66 per cent expect stagflation (below-trend growth and above-trend inflation), which was up from 62 per cent in March, and represented the highest percentage since August 2008.