Investors are saving cash and lowering expectations for growth as pessimism about the outlook for the U.S. economy has reached a “pessimistic” level, according to a survey of 259 fund managers responsible for investing more than $ 700 billion. increase.
In a monthly survey produced by Bank of America and gaining widespread attention in the financial world, optimistic views on global growth fell to record lows, the levels recorded shortly after the 2008 Lehman shock. Was shown to be below. The recession was “likely” the highest since April 2020, the early stages of a coronavirus pandemic.
Investor expectations for corporate profitability have also deteriorated, and the net percentage of respondents expecting improved profits has fallen to record lows.
Studies show a decline in investor optimism this year as rising inflation, rising interest rates, blockages in the supply chain, and the war in Ukraine have helped the stock and bond markets.
Bank of America analysts say the survey shows “pessimistic levels of investor pessimism” and fears that financial markets and broader economic outlook will reach “complete surrender.” rice field. While they waited for the storm, investors said they had the most cash since October 2001, shortly after the attack on September 11.
Investors want the investing companies to take a similarly conservative stance. The largest group states that it is more important to improve the balance sheet and repay debt than to spend on new projects or return cash to shareholders.
