LONDON, Sept. 14 (Reuters) – Barely a tenth of respondents to a monthly fund manager survey expects a stronger global economy in the coming months, marking the lowest proportion since the initial COVID panic -19 last April, according to the September edition of the BoFA survey.
Economic growth expectations are now sharp at 13%, the lowest since April 2020 and sharply down from the peak of 91% in March of this year. The spread of the Delta variant has been cited as the reason for the pessimism, according to the People’s Monthly Survey.
Nonetheless, 84% of investors now expect the US Federal Reserve to start putting in motion its stimulus measures by the end of the year, although expectations for the first US rate hike have been pushed back. to February 2023 compared to November 2022 previously.
Despite growing caution on the macroeconomic outlook, investor positioning in asset markets remains bullish. Equity market protection designed to protect portfolios against a sharp decline in asset values ââwas at its lowest since January 2008.
Global liquidity conditions were widely considered to be the best since just before the global financial crisis hit global markets in July 2007. Almost 60% of those polled in the survey said monetary policy was “too simulative” , which was the highest proportion since May 2011. (Reporting by Saikat Chatterjee; edited by Marc Jones)