BofAML's Fund Manager Survey Sees Global Outlook as Worst Since 2008

The transcript discusses a survey revealing a bearish outlook on global growth, the highest since 2008. Investors are concerned about declining profits and increasing leverage. Despite these concerns, fixed income performed well. The transcript also explores contrarian signals, market positioning, and the divergence in growth expectations between the US and the rest of the world. It highlights the potential for Chinese equities to rise due to policy responses and fiscal stimulus. The crowded position in US Fang stocks is noted, with a challenging political and regulatory environment capping upside returns.

What is the main concern for investors according to the survey?

• Rising inflation

• Increasing profits

• Improving balance sheets

• Expanding market share

Why are investors staying long in the market despite risks?

• They are confident in the stability of emerging markets

• They are waiting for central banks to lower interest rates

• They believe in the strength of tech stocks

• They expect a market event to punish credit investors

What is the average cash balance among investors, and why is it significant?

• 6.0%, suggesting high market confidence

• 3.5%, indicating a bullish market

• 4.5%, showing a neutral stance

• 5.1%, reflecting a bearish sentiment

What is the expected policy response in China that could boost Chinese equities?

• Reduction in export tariffs

• Increase in interest rates

• Expansion of the tech sector

• Major fiscal stimulus

What is the current status of the US Fang stock trade according to the survey?

• It is a declining trade

• It is the most crowded trade

• It is gaining popularity

• It is a new emerging trend