Economic 'boom' expectations spike as equity bets jump to highest level in two years

BofA Global Fund Manager survey

Expectations for an "economic boom" are on the rise as global fund managers hike their overweight position in equities to the highest level in two years, the latest Bank of America Global Fund Manager survey has found.

Investor bets for above-trend growth and inflation rose to 24% in April, up rapidly from 12% in March and 5% in January. This comes as 41% of fund managers surveyed see higher inflation as the biggest tail risk, followed by geopolitics at 24%. Stagflation, where the economy experiences below-trend growth and above-trend inflation, remains the consensus view, at 60%. However, this is down from the 92% peak in September 2022.  Only 9% of investors surveyed expect an environment of stagnation, with below-trend growth and inflation, and only 6% predict a ‘goldilocks' scenario of above-tre...