Investors almost as worried about central banks as trade wars
Published Date: 10/16/2018
Source: axios.com
Investors still think a trade war is the top risk for stocks, but normalized central bank policy is now a close second, according to Bank of America Merrill Lynchs latest survey of over 200 global fund managers.Data: BofA Merrill Lynch Global Fund Manager Survey; Note: Surveys of 231 panelists with combined $646B assets under management conducted Aug. 39, Sept. 713, and Oct. 511, 2018; Chart: Harry Stevens/AxiosInvestors are uneasy about a global end to quantitative easing or central banks use of bond purchases to push down rates even though both the European Central Bank and the Bank of Japan are still buying (despite slowing down). Notably, this survey was conducted during the stock market's two-day rout, which was widely believed to be sparked by fears of Fed hawkishness.Other survey findings:Fears about a China slowdown moderated in October. "European populism" was the fourth biggest risk, according to those surveyed. 85% of those surveyed said the global economy is in its "late cycle," the most since December 2007.35% of respondents think corporate earnings won't improve by 10% or more in the next year, but back in February 35% said they did expect earnings to improve by that amount.