BofA: Recession fears pick up in March as markets grapple with banking turmoil

Growing optimism on Fed cuts

Global fund managers have increased their recession expectations for the first time in over four months, as markets grapple with several bank failures and the possible economic ramifications.

According to the Bank of America's Global Fund Manager survey, the likelihood of recession in the next 12 months is rising again, from 24% of respondents in February to 42% this month, the biggest month-to-month rise since July last year.  In total, 88% of investors surveyed expect the stagnation backdrop to persist into the first quarter of 2024, up from 83% last month. Stagflation expectations have lingered above 80% for ten consecutive months. Investors surveyed have never held such strong conviction about the economic outlook, BofA said. BofA: European fund managers lower th...