The BofA monthly fundie survey says it all this month:
Bottom line: least bullish survey since Oct’20; FMS cash levels jump to 12-month high as global growth expectations turn negative 1st time since Apr’20 on inflation & China pessimism; allocation to bonds slumps to all-time low, to stocks still very high (Chart 1).
FMS on Macro: bearish…net 6% of investors say global growth to weaken next 12-months, 15% say profit growth to slow (margin outlook worst since May’20); predictions of “boom” drop to 61%, of “stagflation” up to 34%, as gap between“transitory” vs “permanent” inflation continues to narrow (58% vs 38% respectively).
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
