Key Points
Investor allocation to equities relative to bonds has dropped to its lowest level since the global financial crisis as worries about a recession take hold, according to Bank of America Corp.s global fund manager survey...
In the most bearish survey of this year the first after banking turmoil roiled markets last month investors indicated that fears of a credit crunch had driven up bond allocation to a net 10% overweight the highest since March 2009..
A net 63% of participants now expect a weaker economy, the most pessimistic reading since December 2022...
A credit crunch and a global recession are seen as the biggest tail risks to markets, followed by high inflation that keeps central banks hawkish..
Most crowded trades: long big tech stocks (30%), short US banks (18%), long China equities (13%), short REITs (12%), long European equities (11%), long US dollar (5%)..
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