Investor pessimism worst since 2008 global financial crisis: BofA survey

Investors slashed their exposure to risk assets to levels not seen even during the global financial crisis in a sign of full capitulation amid a 'dire' economic outlook, says the survey

Expectations of global growth and corporate profits have plunged to a record low, according to a monthly BofA fund manager survey with cash levels rising to their highest in more than two decades as investors cut their exposure to risky assets.

Conducted from July 8-15 among nearly 300 investors overseeing $800 billion in assets under management, the survey revealed a "dire level of investor pessimism" surpassing the depths of the COVID-19 pandemic and the global financial crisis in 2008.

Investors have raised their cash levels to more than 6%, the highest since October, 2001 while equity allocations have slumped to levels last