Investor pessimism is the worst since the 2008 crisis

Investor pessimism has been on the rise since 2008 Visitors: 74 ★★★★★

A survey conducted from July 8 to 15 with the participation of almost 300 investors controlling assets under management worth $800 billion showed that the "level of extreme investor pessimism" exceeded the depth of the COVID-19 pandemic and the global financial crisis of 2008.

Investors increased their liquidity levels by more than 6%, which is the highest level since October 2001, while the distribution of shares fell to levels that were no longer there after the collapse of Lehman Brothers in 2008.

According to the US investment bank, fears of a recession have returned to levels not seen since May 2020, while investor sentiment is still at the maximum level of "acceptability".

While three-quarters of fund managers surveyed expect inflation to decline over the next 12 months, the backdrop remains "stagflationary" as high inflation and slowing growth underpin sentiment.

Long positions in US dollars were most in demand in July, followed by long positions in oil and commodities and long positions in ESG assets.

The prospect of high inflation is the most important risk for global markets, followed by a global recession. The conflict between Russia and Ukraine dropped to fifth place.

Half of the investors surveyed want companies to consolidate their balance sheets, while less than a third of them want to see more investment spending.

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Investor pessimism is the worst since the 2008 crisis

According to BofA's monthly survey of fund managers, expectations of global growth and company profits have fallen to record lows. The liquidity level has reached its highest level in the last twenty years as investors have reduced their exposure to risky assets.

Monetary policy and the European energy crisis.

Ten-year BTP returns to the 91 euro zone with a yield of 1.909%, while Bud falls to 97 euros with a yield of 0.266%.

Orban: Ukraine is actually asking to block the Hungarian economy

In fact, Ukraine demands a complete shutdown of the Hungarian economy, Hungarian Prime Minister Viktor Orban said on Sunday, referring to the postulates on banning the import of Russian energy resources to the EU.

Inflation can lead to higher wages for all segments of the population

Representatives of the European Central Bank (ECB) are very concerned that the price increase may become a spiral that will also raise wages in the eurozone. The labor market is also facing further strengthening due to the military actions in Ukraine