Wednesday, December 19, 2018

Fund Managers Brace for the Worst

Professional money managers have turned bearish in their outlook for the stock market and the economy, according to Bank of America Merrill Lynch’s new December survey of more than 240 professional investors.  More than half, 53 percent, of those surveyed see the global economy deteriorating over the next twelve months, up from 44 percent in November.

That's the highest share of those surveyed since October 2008. Despite the expectations for slowing global economic growth, most do not think there will be a recession in 2019. Only 9 percent of those surveyed expect an actually recession next year.

One result of this attitude: Fund managers are fleeing stocks and buying bonds in record numbers. This month's survey found the biggest ever one-month move into the asset class of bonds.

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