Investor gloom over global growth is the worst in more than a quarter of a century due to the Russian war in Ukraine
Some 71% of fund managers in March, 2022 said they expected the global economy to weaken over the next 12 months as they were concerned about the wider implications of the Russian war in Ukraine, according to the Bank of America survey.
“Investors are grappling with the prospect of a really big slowdown in economic growth over the next six months. It’s still a minority who believe there’s a recession coming, but that picture is quickly changing,” said Michael Hartnett, chief investment strategist at Bank of America.
Stagflation — an unwelcome combination of below-trend economic growth and above-trend inflation — is now expected by two-thirds of fund managers surveyed by BofA. That’s the worst reading for this measure since August 2008, the month before the Lehman Brothers implosion.