Fund managers are still very bearish on the economy, and the vast majority predict stagflation in 2023, according to the results of Bank of America’s November Global Fund Manager Survey.
Of the 309 surveyed fund managers, which oversee a total of $854 billion in assets, expectations of global growth were at a net -73% in November, compared with -72% in October. Meanwhile, profit expectations improved slightly, with a net 77% of investors expecting global profits to decline over the next month, down from 83% in October and a 14-year high of 92% in September.
When asked how they see the global economy trending over the next 12 months, 92% said they expect stagflation (below-trend growth and above-trend inflation), up from 91% in October. The November response equals the September response, which had been the highest percentage in the history of the survey.
The continued bearish sentiment kept cash levels high at 6.2% in November,…
