Investor sentiment in doldrums, growth optimism hits record low: BofA study

Survey shows while inflation is seen falling, mood is stagflationary; recession expectations highest since May 2020; global growth and profits at all-time lows, cash levels highest since 9/11 attacks

Investors have scaled back their allocation to equities as pessimism has reached “dire” levels due to cloudy economic outlook, according to the latest Bank of America (BofA) monthly global fund manager survey that covered nearly 300 money managers with combined assets of $800 billion.

The survey showed that the expectations for global growth and profits are at all-time lows and cash levels are at highest since the 9/11 attacks.

Interest rate hikes by central banks, the unwinding of an easy monetary regime, disruptions in global supply chains, and fears of recession have heightened market volatility since the beginning of the