GLOBAL money managers are holding the lowest level of stocks in their portfolios since the global financial crisis in 2008, revealed a closely watched survey published yesterday.
Expectations for world economic growth dropped to the deepest point on record, as did bets on expansion in corporate earnings,
The bottoming out risk appetite reflects the "dire level of investor pessimism,"
Mounting fears over some of the world's biggest economies soon falling into recession have prompted fund managers to park the biggest proportion of their holdings in cash in over two decades.
A severe inflation surge is straining households and corporates to maintain economic activity levels.
Central banks are raising interest rates at a rapid clip to tame living costs, clamping down on spending and investment.
Higher borrowing costs tend to weigh on equity markets by making fixed income assets more attractive and hitting future stock valuations.
The S&P 500,
(c) 2022 City A.M., source