Expect a U or W-shaped recovery - BofA survey

Just 10% of investors anticipate V-shaped recovery

Investors are markedly bearish, with 75% anticipating a U or W-shaped recovery from the economic fallout of the coronavirus pandemic compared to just 10% expecting a V-shape, according to the latest global fund manager survey from Bank of America.

A second wave of coronavirus ranks as the greatest tail risk by far, with 52% of managers surveyed citing it, while permanently high unemployment (15%) and a break-up of the European Union (11%) claim the second and third spots. Managers dismiss sell-side concerns as US equities near tech bubble highs Cash levels have dipped slightly to 5.7% from April's 5.9% but remain well above the 10-year average of 4.7%, which indicates that a "buy signal" is a contrarian bet. In line with this "extreme bearish" investing, those who responded are underweight cyclical assets, such as energy and...