Wall Street Rebuffs Soft-Landing Dream as 92% Bet on Stagflation

  • BofA investor survey shows a pervasive belief in stagflation
  • Recent inflation data is promising as investors stay defensive

Pedestrians walk along Wall Street in New York.

Photographer: Michael Nagle/Bloomberg
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On the most optimistic corners of Wall Street, promising inflation data over the past week or so suggest the Federal Reserve may accomplish a soft landing after all.

Yet no such belief prevails among the big money managers, who are betting that an economic downturn riddled with still-hot price pressures will define trading next year.