BofA Survey Shows Investors Expect Stock Rally to Fizzle Out
- Global growth pessimism drops to lowest in a year: BofA poll
- Hartnett says low stock exposure doesn’t signal imminent drop
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While equity markets are on a relentless march higher amid optimism around stronger economic growth and cooling inflation, most investors aren’t convinced the gains will last, according to Bank of America Corp.’s latest global fund manager survey.
About 66% of participants in the bank’s February survey said stocks are seeing a bear market rally — signaling they expect them to return to new lows. That’s even as the share of investors expecting a global recession fell to 24%, down from a peak of 77% in November. Pessimism around economic growth is at its lowest in a year, while 83% of fund managers see inflation easing further over the next 12 months, the survey showed.