BofA Securities – Global Fund Manager Survey: The Bear Necessities

The main theme of the report is the analysis of sentiments and strategies of global fund managers, with a focus on bearish market sentiments.

Key findings include the fifth most bearish sentiment in the last 25 years and the fourth largest recession expectations in the last 20 years. A record number of global investors intend to reduce their US equity holdings. There are high expectations of inflation and the likelihood of a 'hard' economic landing. Major risks include a trade war and recession. Changes in asset allocation involve increasing bond holdings and reducing equity holdings, especially in the US. Countercyclical strategies include tariff reductions and significant Fed rate cuts.