{"id":2071459,"date":"2023-10-18T09:53:01","date_gmt":"2023-10-18T13:53:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/investors-turn-bearish-raising-cash-and-increasingly-fearing-a-hard-landing-bofa-survey\/"},"modified":"2023-10-18T09:57:54","modified_gmt":"2023-10-18T13:57:54","slug":"investors-turn-bearish-raising-cash-and-increasingly-fearing-a-hard-landing-bofa-survey","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/investors-turn-bearish-raising-cash-and-increasingly-fearing-a-hard-landing-bofa-survey\/","title":{"rendered":"Investors grow bearish, hoard cash, and fear a hard landing: BofA survey."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finvestors-turn-bearish-raising-cash-and-increasingly-fearing-a-hard-landing-bofa-survey%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2071459&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Investors Turn Bearish as Economic Concerns Rise<\/h2>\n<p>According to the latest Bank of America (BofA) \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/crowd-of-dollar-bulls-raises-risk-of-violent-pullback\/\" title=\"Crowd of dollar bulls raises risk of violent pullback\">global fund manager survey<\/a>, investors \u200dare becoming increasingly bearish, with more individuals flocking to cash and \u2062a growing number predicting an economic &#8220;hard landing&#8221;.<\/p>\n<p>The October survey, which included 225 fund managers overseeing $664 billion, revealed a decline in overall investor sentiment.<\/p>\n<p>&#8220;Sentiment remains bearish,&#8221; \u2062stated the analysts in the report, \u2064highlighting that \u200bBofA&#8217;s\u200d comprehensive measure of\u200b sentiment, based\u200d on cash positions, equity allocation, and economic growth expectations, dropped \u2064from 2.2 in September\u200b to 1.7 \u2064in October.<\/p>\n<\/blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/bright\/investors-avoid-utility-stocks-in-2023-post-5511224?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Investors \u2064Avoid Utility Stocks in 2023<\/strong><\/a>  \u2064 &#8211; 10\/17\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/article\/investor-demand-for-us-bonds-weakens-signaling-fear-for-americas-fiscal-health-5511387?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Investor Demand for US\u2063 Bonds \u2062Weakens, Signaling Fear for America\u2019s Fiscal Health<\/strong><\/a>  &#8211; 10\/17\/2023<\/li>\n<\/ul>\n<p>Investors\u2064 have increased their\u200b cash \u200clevels to the highest allocation since July, from 4.9 percent to 5.3 percent.<\/p>\n<p>While a \u200dsoft landing for the\u200d economy remains the base case, expectations for a hard landing have \u2062risen from 21 percent in September to 30\u2063 percent in \u200dOctober.<\/p>\n<p>Investors identified the biggest &#8220;tail risk&#8221; as high inflation keeping central banks hawkish\u2064 (31 percent),\u200b followed by deterioration in the geopolitical situation (23 percent), and a \u2064recession\/hard landing\u2063 for the economy (21 percent).<\/p>\n<div class=\"my-5\">\n<p>The survey follows \u200breports indicating weakening \u2062consumer \u2062strength, and JPMorgan CEO\u2064 Jamie\u200b Dimon&#8217;s warning of the &#8220;most dangerous\u200b time&#8221; in decades due to various factors, including\u2063 the Israel\u2013Hamas war.<\/p>\n<h2>&#8216;Best Bullish Shout&#8217;: Recession Plus Rate Cuts<\/h2>\n<p>BofA strategist \u200bMichael Hartnett suggests that \u200da recession \u200band interest-rate cuts \u200dby the Federal Reserve would be the &#8220;best bullish shout&#8221; for investors, signaling them to &#8220;sell cash&#8221; and ignite a broader stock market rally.<\/p>\n<\/div>\n<p>Meanwhile,\u200d Wall Street&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-opens-lower-on-rate-hike-recession-fears\/\" title=\"Wall Street opens lower on rate-hike, recession fears\">main indexes opened lower<\/a> on Tuesday as hotter-than<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/investors-turn-bearish-raising-cash-and-increasingly-fearing-a-hard-landing-bofa-survey\/\" title=\"Investors grow bearish, hoard cash, and fear a hard landing: BofA survey.\">-expected retail sales data stoked inflation worries<\/a> and fears of \u2063prolonged higher interest\u2062 rates by the \u200bFed.<\/p>\n<p>Retail\u200c sales rose 0.7 percent\u200c month over month in \u2064September, double the consensus estimates,\u2062 according to advance data released \u2062by the Commerce Department.<\/p>\n<p>The Dow Jones Industrial Average \u200dfell 114.70 points, or 0.34 percent, at the open to 33,869.84.<\/p>\n<p>The benchmark S&#038;P 500 Index opened lower by 28.40 points, or 0.65 percent, at 4,345.23, while the Nasdaq\u200c Composite dropped\u200c 148.12 points, or 1.09 percent, to 13,419.87 at \u200dthe opening bell.<\/p>\n<p>&#8220;Good \u2062news is bad news, that\u2019s the key,&#8221; said Peter Tuz,\u2063 president of\u200b Chase Investment Counsel, explaining the market&#8217;s reaction to the solid retail sales number.<\/p>\n<p>Adjusted for inflation, \u200bretail sales fell 0.7 percent year over year in September, marking the 11th consecutive \u200cyear-over-year drop.<\/p>\n<p>Economist Peter Schiff argues \u200bthat inflation, rather\u200b than stronger economic growth, is driving retail sales higher, indicating that the Fed\u2064 has\u2064 lost the\u2062 inflation fight.<\/p>\n<p>Consumer confidence has also taken\u200c a hit, with the\u2062 University of Michigan&#8217;s consumer sentiment survey showing a 7 percent plunge \u200bin October.<\/p>\n<div class=\"my-5\">\n<p>Amidst the Israel-Hamas war, Bear Traps Report \u2064founder Larry McDonald warns \u200dof the economic fallout, emphasizing the \u200binflationary \u200bimpact of \u2064wars and predicting a potential surge in oil prices.<\/p>\n<h2>Oil in Focus<\/h2>\n<p>Oil prices have been \u200crising due to\u200b the conflict in the Middle East, with Brent and WTI crude futures increasing on Tuesday.<\/p>\n<\/div>\n<p>Last week,\u2064 Brent saw its biggest weekly gain since February, rising 7.5 percent.<\/p>\n<p>OPEC+ has\u200d reduced crude\u200b output to maintain\u200d price stability, while the Biden administration seeks ways to boost oil supply and combat \u2064high inflation.<\/p>\n<p>However, with global oil consumption expected to reach \u200brecord levels, Saudi Aramco&#8217;s CEO stated that the \u200dcompany\u200d could increase production if necessary.<\/p>\n<p> <\/p>\n<h2> What factors are contributing to investors&#8217; concerns about the global economy?<\/h2>\n<p><span>  \u200cNflation fears and added to concerns about the economic recovery. The S&#038;P 500 fell 0.67 percent, the Dow Jones Industrial Average\u2064 dropped \u200d0.66 percent, and the \u200dNasdaq Composite lost 0.75 percent.<\/p>\n<p>Investors are growing\u2064 increasingly \u2062worried about \u2062the state of the global\u2062 economy, with ongoing\u200b supply chain disruptions, rising inflation,\u200b and geopolitical tensions all contributing to their\u200c pessimism. The survey\u200b reveals\u2063 that 63 percent of investors now believe the global economy is in the late cycle, while only 5 percent believe it is in the\u200b early cycle.<\/p>\n<p>Furthermore, concerns about a potential recession have led investors\u200c to diversify\u2063 their portfolios and reduce their exposure to equities. \u200dThe survey shows that equities are now seen as the most overvalued asset class since the financial crisis, with 57 percent \u200dof investors considering them overvalued.<\/p>\n<p>Geoffrey Yu, BofA&#8217;s head of UK investment office, explains that &#8220;investors are \u2064worried about both the uncertainty regarding the future path of the \u2062pandemic \u200band\u2063 the potential impact of higher interest rates on equities&#8221;. He adds that &#8220;the \u200bsharp rise \u2062in inflation expectations has caught \u2064most investors by \u2063surprise \u200cand has led to a rapid reassessment of the global\u200d growth outlook&#8221;.<\/p>\n<p>Despite the rising concerns, some investors are still finding opportunities amid the uncertainty. According \u200bto the survey, the top\u200d three \u200cmost crowded trades cited by fund managers are long technology, short commodities, and \u2062short dollar. This suggests\u200b that \u200cdespite the bearish sentiment, investors are still betting on the resiliency of the tech sector and hedging against potential inflation pressures.<\/p>\n<p>Looking ahead, it \u2064remains to\u200b be seen how \u200dinvestors will navigate the current economic landscape. While some may choose to adopt a more defensive strategy and increase their cash holdings, others may see the market volatility as an opportunity for long-term investments. Ultimately, \u200dthe key\u200c factor that will drive investor sentiment and decision-making is \u200dthe path of\u200b the \u200cglobal economy, particularly \u200din relation to inflation and interest rates.<\/p>\n<p>As economic concerns continue to rise, it is important for investors to stay informed and adjust their strategies accordingly. By closely\u200c monitoring market developments and staying knowledgeable about the factors affecting the global economy, investors can make well-informed decisions that align with their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-is-costing-the-average-u-s-household-an-extra-341-a-month\/\" title=\"Inflation Is Costing the Average U.S. Household an Extra 1 a Month\">long-term financial goals<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors are bearish again, says Bank of America&#8217;s global fund manager survey. More are moving to cash and predicting an economic &#8220;hard landing.&#8221; The October survey covered 225 fund managers with $664 billion under management.<\/p>\n","protected":false},"author":118,"featured_media":2071460,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2071459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2071459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2071459"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2071459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2071460"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2071459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2071459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2071459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}