Taper tantrum, inflation surpass Covid as top market risk: BofA survey

An overwhelming 93 per cent of FMS investors expect higher inflation in the next 12 months

Taper tantrum, rise in inflation and increase in corporate taxation have toppled Covid-19 as the biggest risk for investors, reveals the Global Fund Manager Survey by BofA.

“A year ago, Covid-19 was named a global pandemic on March 11. Now in April 2021, a mere 15 per cent cite COVID-19 risk as the biggest tail risk, lower than even "higher taxes" at 15 per cent. Taper Tantrum is now first at 32 per cent, followed by inflation at 27 per cent,” said the brokerage in a note.

The BofA Survey was conducted between April 6 and 12 with over 200