More than half of fund managers expect global growth to weaken over the next year, according to the latest Bank of America Merrill Lynch (BofAML) survey, representing the worst outlook on the global economy since October 2008.
The survey of 243 participants with $694bn assets under management ran between 7-13 December and found 53% expect the growth to slow. However, just 9% predicted a global recession in 2019, down 2 percentage points (ppt) from the previous month. Subsequently, investors rotated into fixed income, with bond allocations rising 23ppt to net 35% underweight, one of the biggest ever one-month rotations and the highest bond allocation since the UK voted to leave the European Union in June 2016. Furthermore, average cash rose to 4.8%, up from 4.7% the previous month, while allocations to globa...
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