Investors grow jittery on stagflation as bulls go into lockdown

BofA Global Research report

Stagflation concerns are growing among fund managers as 34% of global investors expect lower growth and higher inflation over the coming year, as BofA research shows bulls are going into lockdown.

The latest global fund manager survey by Bank of America (BofA) showed investors are the least bullish since October last year, fund managers' cash levels jumping to a 12-month high as global growth expectations turn negative on inflation and China pessimism. BofA's European fund manager survey showed expectations for global growth "have collapsed", with a net 6% of investors expecting the economy to weaken, which is "the most pessimistic growth reading since the start of the pandemic last March". Deep Dive: Challenging misconceptions about inflation Investors are preparing for the...