Mumbai: The latest monthly survey by Bank of America Securities showed fund managers are increasingly worried about growth expectations, China and stagflation.
Cash levels are at a one-year high while growth expectations are the weakest since April 2020, the survey showed.
According to the survey, 6 per cent of fund managers believe global growth will weaken in the next one year while 15 per cent said profit growth will slow. Predictions of a ‘boom’ have dropped to 61 per cent while that of stagflation have risen to 34 per cent, said Bank of America Securities.
Around 85 per cent of the fund managers surveyed expect higher short term rates and pencil one Fed rate hike for 2022.
Short China was the most crowded trade, the survey showed.
The survey also showed that inflation, China and COVID-19 were the biggest risks.
