Investor pessimism is the worst since the 2008 crisisBarry Copeland 21 / July / 22 Visitors: 800
A survey conducted from July 8 to 15 with the participation of almost 300 investors controlling assets under management worth $800 billion showed that the "level of extreme investor pessimism" exceeded the depth of the COVID-19 pandemic and the global financial crisis of 2008.
Investors increased their liquidity levels by more than 6%, which is the highest level since October 2001, while the distribution of shares fell to levels that were no longer there after the collapse of Lehman Brothers in 2008.
According to the US investment bank, fears of a recession have returned to levels not seen since May 2020, while investor sentiment is still at the maximum level of "acceptability".
While three-quarters of fund managers surveyed expect inflation to decline over the next 12 months, the backdrop remains "stagflationary" as high inflation and slowing growth underpin sentiment.
Long positions in US dollars were most in demand in July, followed by long positions in oil and commodities and long positions in ESG assets.
The prospect of high inflation is the most important risk for global markets, followed by a global recession. The conflict between Russia and Ukraine dropped to fifth place.
Half of the investors surveyed want companies to consolidate their balance sheets, while less than a third of them want to see more investment spending.