BlockBeats report: On March 17, the latest March global fund manager survey by Bank of America showed that, amid geopolitical tensions in the Middle East and rising inflation expectations, global asset managers are increasing their cash allocations at the fastest pace since the 2020 pandemic, with clear signs of declining market risk appetite.
The survey found that the average cash holding ratio among fund managers rose from 3.4% in February to 4.3%, while overall investor sentiment fell to its lowest level in nearly six months. Meanwhile, the net percentage of respondents optimistic about global economic growth dropped sharply from 39% to 7%.
Regarding inflation expectations, 45% of respondents anticipate that the global Consumer Price Index (CPI) will continue to rise over the next year. As a result, market expectations for Federal Reserve rate cuts have significantly cooled, with only 17% of fund managers now expecting a cut this year, down from 46% in February.
In addition, the survey found:
34% of investors are overweight in commodities, the highest level since April 2022;
53% of investors are overweight in emerging market stocks, the highest level since February 2021;
Allocation to non-cyclical consumer stocks has dropped to the lowest level since December 2022.
The survey, led by Michael Hartnett, was conducted from March 6 to 12 and involved 181 fund managers overseeing approximately $529 billion in assets.