Professional investors are more pessimistic than they have been in a long time.
(Photo: Bloomberg)
Frankfurt Gloomy mood everywhere: due to fears of a recession, major investors made their portfolios much more crisis-resistant in July. They mainly sold on European stocks and, at 6.1 percent, hold the most liquidity since the attack on the World Trade Center in New York in September 2001.
At the same time, they are again investing more capital in bonds. They no longer expect interest rates on bonds to rise any further, especially in the USA. This is the result of the most important monthly survey of international fund managers by the US institute Bank of America Merrill Lynch. Between July 8th and 15th, 293 investors were surveyed who manage a total of around 800 billion US dollars in client assets.
The US bank’s strategists describe the results of the survey as a “full capitulation”. As many fund managers as last did in May 2020 in the midst of the first wave of the corona pandemic are now expecting a global recession. The Bank of America strategists state that there is a consensus that there is a global economic downturn.
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