BoFA Survey Shows Investors' Growth Outlook Weakest Since 2008: Reuters

Citing a monthly fund manager survey by BofA, Reuters reported that investors have more concerns regarding the global growth outlook since the financial crisis in 2008, and they have ramped up their cash holdings to a two-year high.

The majority of investors managing about $1 trillion in assets polled expect an equity bear market in 2022, and allocations to global equities have dropped to the lowest levels since May 2020.

Investors' cash levels rose to nearly 6%, while allocations to commodities soared to a record 33%. According to the survey, hedge funds' net exposure to stock markets has been lowest since April 2020.

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In the European edition of the survey, investors slashed their growth outlook for Europe in response to Russia's invasion of Ukraine. A net 69% of respondents expect the European economy to weaken over the coming year, the highest share since 2011. 

Investors have also slightly increased their expectations for the number of rate hikes from the U.S. Federal Reserve in 2022, even as liquidity conditions have worsened to their lowest since the pandemic hit financial markets in 2020.