Fund managers are more pessimistic than ever

Dusseldorf The mood among professional investors is getting worse and worse. The share quota is currently lower than ever, while at the same time the cash quota is historically high. That’s according to the monthly Bank of America (BofA) survey.

Accordingly, a net 52 percent of institutional investors say that they are currently underweight equities. That’s a record, as is the net 62 percent who overweight cash. The reason for this is the fear of a recession. In the terminology of the survey, “net” means that there are 62 percent more investors who overweight cash than those who do not.

The number of investors expecting a recession has hit the highest level since May 2020, BofA analysts led by Michael Hartnett wrote in a note on Tuesday. A net 92 percent of the survey participants now expect corporate profits to fall in the coming year. This is why fewer investors than ever take above-average risks.