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Bank of America Clients Hoard Cash at Highest Level in Two Decades

  • Monthly BofA survey shows highest cash levels since 9/11
  • Hawkish central banks are now seen as the biggest tail risk
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Investors are piling into cash as the outlook for global growth plunges to an all-time low and stagflation worries mount, according to a Bank of America Corp. fund manager survey that points to continued stock market declines.

Cash levels among investors hit the highest level since September 2001, the report showed, with BofA describing the results as “extremely bearish.” This month’s survey of investors with $872 billion under management also showed that hawkish central banks are seen as the biggest risk, followed by a global recession, while stagflation fears have risen to the highest since 2008.