Fewer fund managers believe the world's economy and stock markets are going to post any noteworthy growth next year, according to a Bank of America Merrill Lynch Fund Manager Survey.
The number of those polled who believe that the global economy will strengthen in the next 12 months has fallen to a net 10 percent, down from a net 27 percent in April and a net 58 percent as recently as February, the survey finds, according to Business Wire.
Similarly, only a net 9 percent of respondents see corporate profits improving in the coming year, the poll finds.
"A triple dip in growth expectations is reshaping investors' stance on risk," Michael Hartnett, chief Global Equity strategist at Bank of America Merrill Lynch Global Research, says in a statement.
However, emerging-market equities still look good.
"A net 29 percent of the panel now has an overweight position in EM equities. This represents the highest reading in any region this month and compares with a net zero percent two months earlier," the survey finds.
Non-financial institutions agree that while many economies across the globe are recovering from recession, their outlooks remain iffy.
Global mining giant BHP Billiton is one.
"In the short term, although many economies are recovering, the world remains in a fragile state with persistent levels of unemployment and threats of inflation," says BHP Chairman Jacques Nasser, according to Reuters.
"For the medium term, we should be prepared for further downside as global monetary and fiscal tightening and economic restructuring take hold."
No comments:
Post a Comment