Fund Managers Haven’t Been This Worried About Recession Since Financial Crisis
According to Bank of America’s global fund manager survey, fund managers are growing increasingly concerned that a recession is on the horizon — and they have not been this worried since the financial crash in 2009.
Of the 235 fund managers surveyed by the firm, 38 percent “expect a recession within the next year,” Markets Insider reported on Tuesday, and most point to President Donald Trump’s trade war as reason for the increased risk.
A key takeaway from the survey, Bank of America said, was that “fiscal stimulus was ‘essential’ to boosting allocations to stocks — an important point given Trump has been focusing on monetary policy to try and stimulate the economy in the form of rate cuts.”
"Infrastructure spending (fiscal policy) is also the area of US economic policy where Fund Manager Survey investors think there is the most bipartisan support," the report said.
"Whatever the outcome of the 2020 US Presidential election, we expect government spending to rise," Bank of America added.