What are investors afraid of? Worrying results from the Bank of America survey

Collecting cash and not being interested in shares - from the survey Global Fund Manager Survey conducted by Bank of America shows that such trends currently dominate among investors. The study covered fund managers with a total value of nearly USD 900 billion.

As the outlook for global economic growth worsens and slows to an all-time low, respondents seem to be amassing more and more cash. From the Bank of America report entitled The Global Fund Manager Survey shows that cash resources among investors peaked since September 2001.

The black vision of stagflation

This month's survey found that central banks willing to aggressively raise interest rates are seen as the greatest risk to financial markets. The global recession is in second place, and fears of stagflation, i.e. a combination of inflation and economic stagnation, come third. Fear of stagflation rose in the eyes of investors to the highest level since the 2008 global financial crisis.

Hard times on the stock markets

A report by Bank of America shows that tech stocks are under the greatest pressure since 2006. Worse, the final lows have yet to be met here.

- The results of the survey may point to an uninteresting prospect for stock exchanges, which already have the longest weekly streak of losses since the global financial crisis - comments Daniel Kostecki, director of the Polish branch of Conotoxia Ltd.

According to respondents, the value to which the American S&P 500 index (grouping the top 500 companies) would have to fall in order to Federal Reserve started to refrain from further tightening of monetary policy, it falls on the level of 3529, or approx. 12%. below the current level.

- Meanwhile, the announcements of further interest rate hikes by the Federal Reserve remain valid. Movements of 50 basis points upwards are expected in the next two meetings. Central banks around the world shut off money and chill demand to stifle persistently rising inflation - explains Daniel Kostecki.

This is where the traffic is busiest

The tendency to have cash and avoid stock-exchange stocks (especially from emerging markets and the euro area) and bonds does not, however, close the way to investing in Forex market.

A Bank of America report shows that the "busiest" deals currently include oil longs (28%), US Treasury shorts (25%), tech stocks long (14%), and long positions on bitcoinie (8 percent). Long positions assume an increase in the price or exchange rate, while short positions are calculated as a decrease.