Investors brace for slower global growth as European recession expectations grow

Latest BofA fund manager survey

A record net 73% of investors expect the global economy will weaken over the coming year, as the global fund manager survey by the Bank of America shows that stagflation fear is the highest since June 2008.

Investors are even more gloomy on Europe, with over half (54%) of respondents expecting a European recession over the next year, up from 28% in May, according to the BofA European fund manager survey. Over a third of respondents consider hawkish central banks as the biggest risk for markets, up from only 9% in March. This is followed by a global recession (25%) and inflation (22%). A net 73% of survey participants expect a slow ease of supply chain disruptions to keep inflation high, while 83% predict above-trend inflation and below-trend growth over the coming 12 months. A third o...