BofA’s global fund manager survey shows stagflation and recession angst

By Marc Jones

LONDON (Reuters) – A closely-watched survey of global investor views published on Tuesday showed a growing angst that recessions and stagflation episodes will be stalking the world economy next year.

Bofa’s monthly global fund manager survey showed 92% of those who took part now predict “stagflation” in 2023, a net 77% see recession as likely, while for the first time in the survey’s history, more see bond yields falling rather than rising next year.

The survey also showed inflation staying high was still the biggest “tail risk” for money managers and that the top two “contrarian trades” are now being ‘long’ emerging markets and ‘short’ the U.S. dollar.

(Reporting by Marc Jones; Editing by Amanda Cooper)