Staff
Global investors have shifted their attention from Greece to China amid continued concern of a Chinese recession.
A BofA Merrill Lynch Fund Manager survey for August also finds respondents are scaling back their expectations for economic growth.
Read: High correlation between Canadian, emerging markets
Other key findings from the survey show:
- a recession in China is now rated the No. 1 “tail risk” by 52% of respondents;
- 53% of investors say the global economy will strengthen in coming year, down from 61% in July;
- more investors say global emerging markets is the region they most want to underweight while Europe is the region they most want to overweight;
- a rising consensus that the Fed will raise rates in third quarter; the majority of panel now expects the yield curve to flatten in next 12 months; and
- an anti-commodities stance is evident with moves out of energy and materials, while defensive weightings increase.
“Investors are sending a clear message that they are positioned for lower growth in China and emerging markets,” says Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research.
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