US economy: Bank of America fund manager survey shows most are betting on stagflation ahead
Hopes of a soft landing are slim among fund managers, according to Bank of America’s survey. Bloomberg.Ms Li sees a US growth slowdown, earnings downgrades and elevated price pressures, justifying the firm’s underweight positions in developed-market equities and bonds, though it is ready to put some cash back into corporate credit.The pessimism contrasts with a bout of ebullience sparked by last week’s US inflation report suggesting price pressures may be peaking.As rate rises spark bear markets in stocks and bonds, the Fed has gone from a friend in the bull times to a newfound foe.Citi, for one, is touting the idea of the “Powell Push”, with the Jerome Powell-led central bank forced into growth-sapping rate increases on still-raging inflation ahead.